Research On Risk Cost Identification And Measurement Of Logistics

The logistics industry is a special material production department. As one of thetop ten revitalization industries designated by the nation, it is an important foundationas well as a leading department，which plays a significant role in promoting industrialstructure adjustment and economic development mode changing and strengthening thecompetitive power of the national economy. However, the development of thelogistics industry has often constrained by the domestic economy and even globaleconomy development. Recently, with the incidents increasing. as the Chinese marketcontinuously opened and large foreign logistics enterprises poured in, the domesticlogistics industry production operation has had unprecedented uncertainty, and theuncertainty of market supply and demand of goods and services is more difficult tograsp,the logistics risk problem under the background of global market is increasinglyprominent.According to researches, many logistics enterprises dominated by transportin our country decline in volume of business, which causes a great shock and even agreat risk to the logistics enterprise. In the face of fierce market competition at homeand abroad, the logistics enterprise itself faces great risk cost pressures, such asmarket, technology, talent, environment, economic fluctuations and other accidents.and the explicit and implicit losses from these risks make logistics risk cost increasing,which becomes an obstacle that cannot be ignored to the enterprise competition.Thus, if logistics industry commits itself to effectively solving the problems of therisks and costs in the development, it ought to establish the concept of risk costmanagement and strengthen risk cost management consciousness to adapt to thedevelopment of modern logistics.Therefore, it has important academic value andpractical guiding significance that the risk cost management theory and method onlogistics should be further studied in accordance with the special environment andpractice of China’s logistics development.In view of the above-mentioned, this article studies the risk cost identificationand measurement of logistics from practical needs of China’s logistics risk costmanagement, by using the basic theory of risk management,uncertainty and costmanagement, based on the characteristics of the risk of the logistics industry and theperspective of logistics risk cost system management. Generally, risk cost identification and measurement is the foundation of the risk cost management whichis a system framework and also the starting point of the risk cost management andreduction. In all, This article aims at clearly defining the meaning of logistics risk costfrom the connotations, characteristics and formation mechanism of risk cost, anddeeply analyzing the category and characteristics of logistics risk cost from theobjectives, procedures and methods of logistics risk cost management on account ofthe basic risk cost management theory and the formation mechanism and essentialattributes of logistics risk cost. Furthermore, it sets up a logistics risk cost conceptframework from the internal relations among the elements of logistics risk cost riskcost. Moreover, this article establishes the risk cost of logistics measurement modelfrom the choices among the measurement of logistics risk management cost, logisticsrisk loss cost and logistics risk opportunity cost to lay the foundation to the theory andmethod system of risk cost of logistics identification and measurement, with the deepstudy of the reason of logistics risk cost formation, the constitution of the contentsystem and the status of each cost elements in content system, using the existing riskmeasurement model for reference, on the basis of the characteristics of the logistics ofrisk cost.