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Risk is an intrinsic part of business in a market economy. The ability to control risk in operations is essential to productivity and profitability. Typically, actions to control operational risk and its effects are the result of an ad hoc process, adopted without a comprehensive analysis of alternatives. Risk mitigation in supply chains requires closer analysis since coordination across multiple organizations is required. Effective risk management requires an assessment of both the locus of control and the range of alternative control actions. We describe the nature of operational risk, its locus, and present a taxonomy of mitigation tactics. We observe that operations adopt a mix of control actions and that this mix must evolve in response to changes in the environment. Finally, we present a discussion of the issues and processes required to revise the mix of risk mitigation tactics.