Risk management of Circular Economy: a framework based on Interpretive structural model

Over last years Circular Economy has attracted increasing attention from scholars and businesses, due to its ability to decouple the economic and social growth from the usage of natural resources and the degradation of the environment. Several risks however affect the CE adoption and implementation. In this regard, it is of paramount importance to identify the relationships between circular economy practices, the risks associated with them and their mitigation strategies in order to identify the drivers on which to act for an adequate and efficient transition. Through a review of the literature of main risks and the analysis of case studies, the Interpretive Structural Modeling (ISM) methodology has been used to discover these relationships in the Italian furniture industry. This is the first study of its kind which provides evidence about the adoption and implementation of CE practices and related risks in the furniture sectors as well as mitigation strategies which can be used to manage such risks and overcome such barriers. The outcome of this study will help companies operating in furniture industry as well as policy makers to devise strategies to favor an adequate and efficient CE transition.