DEA-driven risk management framework for oil supply chains

This paper develops a comprehensive risk management framework to optimise the Nigerian oil supply chain risk mitigation strategies. Given the complexities of the oil supply chain, this framework aids researchers and decision-makers in navigating innovative risk management approaches and considering the implementation of associated challenges. Data Envelopment Analysis (DEA) is initially employed to prioritise risk factors, and based on obtained results, optimal response strategies are determined. The study's findings reveal that criminality and terrorist attacks are the paramount Nigerian oil supply chain risk factors. Additionally, the research identifies practical mitigation strategies, such as risk transfer, safety planning, alternative energy carriers, improved energy efficiency, emergency rescue plans, expected shortages, and diplomatic relations. This research contributes valuable insights to both academia and industry, fostering a deeper understanding of risk dynamics in the Nigerian oil sector. The framework presented offers a powerful approach to risk management, providing a foundation for informed decision-making and strategic planning in the ever-evolving landscape of supply chain dynamics.