This research extends risk management into risks other than technical, includes the opportunities alongside the threats, and accommodates strategic issues. The strategic risk management method developed here has been demonstrated by application to a NZ manufacturing firm. The results suggest that a strategy of outsourcing production to a lower wage country is not the only possible solution for a product-manufacturing firm, and specific other options are identified. The research has practical implications for NZ manufacturing industries, particularly those seeking to move into higher-value manufacturing.
Strategic management of manufacturing is otherwise somewhat ad-hoc and poorly integrated with risk management, and the model provides a method that could help organisations navigate the turbulence of the global economic manufacturing sector.While the methodology has been illustrated by application to the strategic risk in manufacturing organisations, it has the potential to be used in other situations in response to threats and opportunities that affect the long term financial viability of the organisation. Manufacturing and other production organisations that are interested in further research and application of the method are encouraged to contact the Principal Researcher.