Encyclopedia in Operations Management, Elsevier, 2026
Risk pooling is an effective strategy for overcoming the negative impacts of uncertainties in operations management. Risk pooling can take physical or informational forms. This chapter introduces, defines, and explains risk pooling in a supply chain context. We discuss risk pooling models and practices using four decision-making levels: strategic to tactical, tactical to operational, intermediate operational, and final operational risk pooling decisions. We conclude by presenting future directions in risk pooling methodology.