Although the scope of supply chain insurance capitalizes on financial losses that an SME incurs due to chain supply interruptions, the enterprises’ dependence on increases business complexities. Abbasi et al. (2018, p. 8) point out that the need for SMEs to obtain the insurance may be beyond a cover for financial losses arising from interrupted distribution lines.

The survival for small-medium enterprises cannot be concentrated in a single local market in a volatile business environment shaped by steep competition. Moradlou and Asadi (2015, p. 36) also note most SMEs are forced out of business by limitations in diversity in unpredictable business environments. With the need to remain viable in unstable markets, most SMEs invest extensively. Thus, creating an increased complexity and risk factors that might affect the expanded supply chain (Abbasi et al., 2018, p. 18).

Research Questions

What are the types of risks exposures that impact supply chain? Further, which types of risks exposers are more important in affecting supply chains?
How can non-contingent exposures be fully covered by insurance products available for the supply chains of manufacturing SMEs?
Additionally, to what extent does effective supply chain management reduce financial loss through the adoption of supply chain insurance in SMEs?
Lastly, can the achievement of effective supply chain management reduce the occurrence of other risks within the volatile market when they adopt supply chain insurance among the SMEs?

Research Objectives- Supply Chain Insurance

Evaluate the ability of available insurance products to cover non-contingent exposures associated with the supply chain in SMEs.
To further establish the extent to which there’s an effective achievement of supply chain management. This is in terms of reducing financial loss through supply chain in SMEs.
Furthermore, determine the achievement of effective supply chain management. In relation to the reduction of other risks within the volatile market through the adoption of insurance in SMEs.

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