SUNConferences, 29th Annual Conference of SAIIE

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A CASE STUDY ON RISK PREVENTION AND CONTROL MECHANISMS IN A LOGISTICS PROJECT
Dafeng Xu, Leon Pretorius, DongDong Jiang

Last modified: 2018-10-09

Abstract


This paper analyzes the definition and division of modern logistics in the logistics industry, and expounds the project management model faced by logistics issues in the transitional period. It further analyzes and interprets project management in the logistics industry, regulates and annotates the meaning of the project, and defines its specific operation contents as "5 + 1", which extracts the theoretical basis and practical needs of the project risk management mechanism. The risk categories are divided into two major categories, four sub-categories, eight classifications and 24 sub-items. Furthermore the probability of various risk occurrences is initially established and then the evaluation methods as well as responding solutions against various degrees of losses are designed so as to establish a set of independent risk prevention and control mechanisms for the logistics project - Five Steps Risk Management and "network" risk control mechanism. This study is carried out based on the case of Korea Hanjin Shipping Bankruptcy, which proves the necessity of the project management mode and risk prevention and control mechanism. Through the practical trial operation in the logistics enterprises, the study validates the feasibility of the theory contained in this paper in a real operation.


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