A Privacy Preserving Approach to Collaborative Systemic Risk Identification: The Use-Case of Supply Chain Networks

Abstract

Globalization and outsourcing are two main factors which are leading to higher complexity of supply chain networks. Due to the strategic importance of having a sustainable network, it is necessary to have an enhanced supply chain network risk management. In a supply chain network many firms depend directly or indirectly on a specific supplier. In this regard, unknown risks of network's structure can endanger the whole supply chain network's robustness. In spite of the importance of risk identification of supply chain network, firms are not willing to exchange the structural information of their network. Firms are concerned about risking their strategic positioning or established connections in the network. The paper proposes to combine secure multiparty computation cryptography methods with risk identification algorithms from social network analysis to address this challenge. The combination enables structural risk identification of supply chain networks without endangering firms' competitive advantage.

Industrial Chain Disruption Events Monitoring with Deep Learning Methods: A Practical Application in China

“…In supply chain networks, many companies rely on specifc suppliers. Zare-Garizy and others [10] combined multiparty computational cryptography methods with risk identifcation algorithms in social network analysis to identify risks in supply chain networks. From the 1980s to the 2010s, the technology for identifying supply chain risks signifcantly shifted from reactive methods to proactive methods [11].…”

The privacy protection mechanism of Hyperledger Fabric and its application in supply chain finance

“…The advantages of these methods include strengthening risk identification for the supply chain network, authenticating a batch of tags with less privacy guarantees, reducing trust issues between supply chain owners and tag manufacturers, reducing computational and communication overhead, and reducing computational effort. However, these passive privacy protection methods cannot completely solve the privacy protection based on transaction information sharing (Zare- Garizy et al 2018;Yao et al 2016;Qi et al 2012;Arbit et al 2014;Lee and Park 2013;Gao et al 2004). Hyperledger Fabric is a well-known blockchain technology implementation.…”