Risk management of Taiwan’s maritime supply chain security

This paper attempts to evaluate the impact of risk factors from the container security initiative (CSI) on the maritime supply chain in Taiwan, employs a loss exposure matrix to identify the severity and frequency of security risk, and uses a bowtie diagram to investigate appropriate risk management strategies to deal with maritime security risks.This paper’s findings consist of the following: (1) the leading categories of CSI risk factors are operational risk, physical risk and financial risk; (2) apart from two security risks comprising high-risk level, the majority of risk exposure is at the medium level; risk management strategies include loss prevention, loss reduction, avoidance, and non-insurance transfer; and (3) all maritime security regulations and measures should consider the balance among cost, time, security, efficiency and competition; failure to do so may lead to additional burdens for maritime supply chain service providers.

Research highlights► Review of current status of CSI and the 24-hour rule in Taiwan’s maritime supply chain. ► Identify security risk factors linked with CSI and 24-hour rule. ► Employ a loss exposure matrix to identify risk level of maritime security. ► Use a bowtie diagram to provide appropriate risk management strategies to deal with maritime security risks.