Information Sharing and Risk over International Trade Lines: The Case of FloraHolland

Information Sharing and Risk over International Trade Lines: The Case of FloraHolland

Morales Velasquez, S.

Hulstijn, J. (mentor)
Klievink, B. (mentor)

Technology, Policy and Management

Management

Management of Technology

2015-08-25

Multiple frameworks and procedures are used in organizations to analyse and assess risks in the most efficient way possible. COBIT, COSO or ISO as some of the most popular frameworks used to evaluate enterprise threats, but each of them offer an independent view on risks that are not the best solution for chains or well stablished organization networks that could benefit of a chain approach to assure the correct and efficient process in these integrated scenarios. A stronger tie between actors in chain processes, increases the need to design and develop capable information platforms that support the regular and continual exchange of information in the supply chain and assess the risks associated with the development of this integrated network. This research aims to evaluate the applicability of an integrated assurance approach on a complex trade lane as a solution to manage and assess risks, where they aren’t perceived as independent scenarios but dependent of the environment. The CANTOR approach refers to ‘Chain Assurance Network Transference of Obligations and Risk-Control’ and it is basically a model that aims to provide guidance on establishing assurance in chains by approaching the complete process and all the actors involved as one virtual organization. This will be done by analyzing the Kenya trade lane by Air of FloraHolland and validating the current state of the chain and the possible risk scenarios in the process. To reach this objective, the following research question has been defined: “Is the CANTOR approach a suitable solution to performRiskManagement for Information sharing that copes with international regulations and trade compliances within the trade lane for shipping flowers from Kenya to the Netherlands by air?” By combining theoretical knowledge, the analysis of current status, processes and activities and main risk scenarios in the aforementioned trade lane, a first approach on the applicability of the integrated assurance approach and governance model will be verified, exposing the gap between theory and practice, clarifying how risk management can be implemented in the Kenya trade lane with the integral approach: CANTOR. The first part of this research consists of the gap analysis. Theory from literature review on risk management, trust, risk assurance, information integration, among others, are compared with the reality of the process state acquired through interviews with actors fromthe Kenya Trade Lane. The results of these interviews define the main risk scenarios of the process regarding information sharing, that will provide insight in the main points to evaluate the suitability of the integrated assurance approach. The second part consists of the design of the structural interviews that will provide the status of the chain regarding how aligned, equipped and organized are the actors in the trade lane in order to effectively apply the integrated assurance and governance control model. The third and final part explains either the CANTOR approach is suitable for the trade lane or not, why and both the benefits or disadvantages of implementing such an approach. To answer this main question, a complete answer is also provided for each of the four sub-questions defined for the research project. Besides contributing to the extant body of knowledge by providing a certain amount of empirical evidence, the study is rich in practical implications for the Kenya Air trade lane of FloraHolland and the information shared in the process. The conclusions could be used for further research, and the final recommendations could be used as additional findings to be considered by future projects that want to evaluate the suitability of the integrated assurance approach in other processes.

risk management
supply chain management
assurance

http://resolver.tudelft.nl/uuid:8bb83258-74a9-4113-a4e6-bb71d1af12c1

2016-08-25

Student theses

master thesis

(c) 2015 Morales Velasquez, S.