Bci NeBe conf 2017 collaboration - improving supply chain resilience - risk and continuity v2 - rob van den eijnden - erwin bos sd

1. Risk Management and Business Continuity:
Better working together
Notes to the BCI Continuity Article & Practical case study of Royal Philips
Rob van den Eijnden
Erwin Bos

2. Better working together
Notes to the BCI Continuity Article & Practical case study of Royal Philips
ErwinRob Both
Introduction
• Today’s goals
• Who involved
• Who we are
BCI Continuity
Article
• Business &
Supply Chain
challenge
• Challenges
• Mapping the
Supply Chain,
• Best Practices &
Conclusions
Royal Philips
Case Study
• Why BCM
• Our Approach
• Challenges
Q&A

3. Today’s goals
Who involved?
1) Presentation of highlights of the final result of the BCI Workgroup Supply Chain Management
2) Understanding how the article came about
3) Give a practical insight via a case study
 Participants of BCI NL/BE members, and Society of Risk Management (GVRM)
 Consultants, and professional practitioners from several (multi)nationals
Rob van den Eijnden
CISA | CRISC | CCSK | Lead Auditor BCM (ISO22301) | AMBCI | ISO31000
Head of Business Continuity & Resilience
Tel +31 (0)6 2113 1633 | rob.van.den.eijnden@philips.com
Who we are
Erwin Bos
CISA | CISM | CCSK | MBCI
Sr. Manager Governance & Policies
Tel +31 (0)6 15 852 653| erwin.bos@philips.com
Group Operations / Safety & Security / Center of Excellence Business Continuity & Resilience
Better working together

4. Continuity Q3 2017 – “Better working together” 1-1
The first product

5. On 14th April, 2016, a strong earthquake occurred, centered in Kumamoto Prefecture in Kyushu, Japan.
This was followed by another earthquake on 16th April, 2016.
KAMAMOTO, April 14th, 2016
The Business & Supply Chain challenge 1-3
Why is Business Continuity so important for Philips?

6. The Business & Supply Chain challenge 2-3
Numerous opportunities for disruption!
Key words
 Complexity
 (Inter)dependencies
 Increased
vulnerabilities
 Today’s examples

7.  66% (out of 526) do not have full visibility of supply chains and 70%
experienced at least 1 supply chain disruption and 34% report cumulative
losses of at least €1 million (2016)
 Unplanned IT or Telecoms outage remains the top cause of supply chain
disruption (60%) and has been the top cause for the last 5 years (2016)
 64% (out of 734) report at least 1 cyber incident in the last 12 months (2017)
 67% (out of 88) indicate that they focus on emerging threats but only 7%
look at the longer term (>5 years) (2017)
Combining Risk and Business Continuity in Supply Chain Management will
minimize effects of disruptions by better prevention
The Business & Supply Chain challenge 3-3
Research facts*
Sources: BCI (Supply Chain Resilience, Cyber Resilience, Horizon Scan and Long term Planning)

8. Supply Chain Management
(ISO22318)
Business
Continuity (ISO22301)
Management
Risk
(COSO / ISO31000) Management
Challenges 1-1
Collaboration of Risk Management & Business Continuity Management
Focus on likelihood and impact;
Strategic, tactical risks
Focus on impact, and scenarios;
Operational risks
View based on managing End-2-End
Understanding both horizons, scope, principles and stakeholders

9. Mapping the Supply Chain 1-1
Creating more control
 The holistic view is based on managing End-2-End
 Key question: ‘How did the interviewed companies integrate RM, BCM, SCM?’
 Summary of benefits:
 Insight in whole supply chain to identify weakest channels / links
 More integration leads to faster and more accurate information to
distribute and respond in crisis situation (decision making process)
Having central RM, and BCM organized, working closely together with SCM
increased the control of disruptions, and (preventive) measures

10. Best Practices & Conclusions 1-2
Implementing greater collaboration between RM and BCM in the area of SCM
Highlights
 Ensure that there is top (senior) management support
 Establish a risk framework (e.g. COSO) which also incorporates BCM, and
ensure that this is covered by company RM and BCM policies
 Ensure that the global risk appetite is integrated in local and global impact
analysis which is the basis for many decisions!
 Consider implementing a support solution (tooling) which will support both
the BCM and RM processes
 Ensure that procurement is aware of the policies and is able to apply them
when selecting and assessing potential suppliers

11. Best Practices & Conclusions 2-2
Will the combination of RM and BCM for SCM increase the resiliency of the
Supply chain?
Identified benefits
 better understanding of the critical components and their impacts
 more consistent view of the organisation, where risks and impacts and by
working together the information can be collected more efficiently
Combining strengths of both disciplines (RM & BCM) to improve resiliency

12. Case Study
Erwin Bos

13. It also happens to us
FranceMexico
Netherlands USA Germany
Netherlands

14. Tianjin 2015
Source: Weibo.comSource: nickholdstock.com

15. Suppliers, time to recover 12 months
Source: sohu.com

16. Scope
• Business Continuity or Operations Continuity1
– Strategic risk
– Financial risks
– Operational risk
– Legal & Compliance risk
– Environmental, Health & Safety risk.
Source: Luc P. Klein – Is Business Continuity a misnomer

17. Scope

18. Three Main Streams
Supply Chain
Digital
Operations

19. Risk Perspective
Source: Timothy J. Pettit, Supply Chain Resilience (2008)

20. Bow Tie
Prevention Mitigation Preparation Response Recovery Aftercare
Capabilities
Business unit
Group Continuity

21. Balancing Act
Source: Timothy J. Pettit, Supply Chain Resilience (2008)

22. Logical Framework

23. Real Time Response

24. Challenges
• Assurance
• Fragmentation
• Economics
• Data Accuracy

25. Call for action!
(Always) we are looking to extend our
BCI workgroup!

26. THANK YOU

27. This presentation was delivered at a
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