Supply Chain Risk Management Profile of the Hyundai Motor Company

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Supply Chain Risk Management Profile of the Hyundai Motor Company A. Strategic/ macro risks A first category of risk facing the management of Hyundai's supply chain is represented by the features of the external environment, outside not only the firm, but also outside the automobile industry. These risks can be divided into four specific categories, as follows: Business cycle risks Social/ demographic risks Environmental/ eco-disruption risks, and last Political/ regulatory regime risks Within each of these categories, specific risks are present, and these impact Hyundai at various degrees. In terms of the business cycle, the risks facing the supply chain of Hyundai include the current economic crisis or the reduction of crediting possibilities. In terms of the social risks, these include changing consumer demands and expectations. The table below reveals the risks associated with each category, as identified above. Business cycle risks Social/ demographic risks - The internationalized economic recession - Fluctuations in the exchange rates - Decreased access to borrowed funds, for both the population, as well as the economic agents - The population becomes more aware of environmental and financial concerns, and changes its demands in automobiles Environmental/ eco-disruption risks Political/ regulatory regime risks - The risk posed by pollution and increased usage of fossil fuels become unsustainable for the population, and new pressures are made
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