Risk Management can be applied to everything we do, however it is sometimes only considered once the issue is apparent. How can we as procurement professionals identify, manage and mitigate the risk associated with both our supply chain and our roles? Are we allowing the tools we may already have at hand to support and guide us? Identification is the most difficult element of Risk Management, and we look at how to capture known Risks and Issues through the use of planning tools, including Programme Management. We will also discover how Evaluation can mitigate risks and minimise potential challenges. As part of the interactive presentation, we introduced the audience to the concept of Vendor Performance Management and the ability to capture, understand and act upon information before a risk is transformed into a problem. The concepts, techniques and technology were brought together via a real customer case study. Throughout this session the human element will remained a constant, as the most important factor to consider...

2. Risk Management
Sarah Kingdom-Evans & Jennifer Whelan | BravoSolution
Cheryl Cooper | Children’s Commissioning Consortium Cymru
Alison Smale | South East Wales Improvement Collaborative

3. • Introduction
• Awareness
• Definition of Risk
• The Need to Identify
• Paddles at the Ready....
• Identify, Mitigate and Manage
• CCCC (Alison Smale and Cheryl Cooper)
• Q&A/Discussion
Agenda

4. 4
•Risk Management can be applied to everything we do, however it is sometimes considered only
once the issue is apparent.
•Awareness - How can we as procurement professionals identify, manage and mitigate the risk
associated with both our supply chain and our roles? Are we allowing the tools we may already have at
hand to support and guide us?
•Identification is the most difficult element of Risk Management, and we look at how to capture
known Risks and Issues through the use of planning tools, including Programme Management. We will
also discover how Evaluation can mitigate risks and minimise potential challenges.
As part of this interactive presentation, we will introduce the audience to the concept of Vendor
Performance Management and the ability to capture, understand and act upon information before a
risk is transformed into a problem.
The concepts, techniques and technology shall be brought together via our real customer case study.
Throughout this session the human element will remain a constant, as the most important factor
to consider...
Overview

5. Not a session to provide all
the answers....
This afternoon
...but to stimulate thought

6. 6
Awareness

7. Please Watch
Please Watch

8. Can you
Define Risk?
Risk ‘a definition of…’

9. 9
Risk ‘a definition of...’
Top 1000 frequently used words
NOUN - A situation involving exposure to danger..
NOUN
•1
A situation involving exposure to danger: flouting the law was too much of a risk
The possibility that something unpleasant or unwelcome will happen:
A person or thing regarded as a threat or likely source of danger
A possibility of harm or damage against which something is
A person or thing regarded as likely to turn out well or badly in a particular context or respect:
The possibility of financial loss

10. The 5 Basic Steps to Identify and Manage Risk
1. Identify
Risks/Threats
2. Measure,
understand
and Qualify
Impact
3. Determine
the expected
consequences
of Risk
4. Identify
ways to
reduce Risk
5. Prioritise
Procedures
Risk may be applied to many areas
Information, Employees, Physical Assets, Reputation,
Finances...

11. Identification of Risk
•The information needs
to provide directional
and strategic planning
to Global Sourcing,
OpCos, Segments and
Category teams.
•“X & Y” axis can vary
from elements to the
right
•Spend vs Risk
•Managed vs Opport.
Volume
• High Spend / Low Risk
• Frequency: Quarterly
• Price based KPI Coverage
Strategic
• High Risk / High Spend
• Frequency: High (Monthly)
• Broad KPI & PC Coverage
Non-Critical
• Low Risk / Low Spend
• Frequency: Annually/None
• Little to No Measurement
Monitor
• High Risk / Low Spend
• Frequency: Quarterly
• Reliability Based KPIs
RISK
VALUE

12. Paddles at the ready…

13. Bird Management – spend €20k per annum or 0.01%
13
High Risk (RED) or Low Risk (Green)

14. Paddles at the ready…

15. 15
Takeaway Coffee Cups
High Risk (RED) or Low Risk (Green)

16. The need to…

17. 17
Awareness, Identification, Mitigation and Management
What can inform us....?
Sourcing
To support the end-to-end
negotiation lifecycle with
in-depth RFX and Auctions
capabilities for
procurement initiatives of
any size and complexity
Contract Management
To manage and control
contractual obligations
across the supply chain
ensuring enterprise-wide
visibility and compliance
management.
Programme Management
To provide project management and control for full lifecycle
of each procurement initiative including workflow and
collaboration support for cross-functional teams
Spend Visibility
To systematically and
comprehensively monitor
organizational spend in
order to better formulate
tactical-strategic
procurement decisions
Vendor Management
To provide detailed and
updated intelligence on
suppliers in terms of
characteristics,
capabilities and past
performance. Includes
advanced workflow
support for supplier
evaluation and
qualification.

18. 18
Awareness - Spend
Sourcing
To support the end-to-end
negotiation lifecycle with
in-depth RFX and Auctions
capabilities for
procurement initiatives of
any size and complexity
Contract Management
To manage and control
contractual obligations
across the supply chain
ensuring enterprise-wide
visibility and compliance
management.
Programme Management
To provide project management and control for full lifecycle
of each procurement initiative including workflow and
collaboration support for cross-functional teams
Spend Visibility
To systematically and
comprehensively monitor
organizational spend in
order to better formulate
tactical-strategic
procurement decisions
Vendor Management
To provide detailed and
updated intelligence on
suppliers in terms of
characteristics,
capabilities and past
performance. Includes
advanced workflow
support for supplier
evaluation and
qualification.

19. Spend Management offers comprehensive insight into spending to identify sourcing
opportunities, manage compliance, mitigate risk and report savings
Capabilities provide for Spend data to be aggregated,
cleansed, and normalized to accurately depict corporate
spending ; Compliance tracking to help ensure
negotiated savings are realized; Enterprise-wide
visibility to identify savings opportunities;
Multi-dimensional risk measurement and supplier
diversity tracking and reporting and Robust exception
management
Spend Visibility and Procurement Analytics

20. Awareness – Vendor Management
20
Sourcing
To support the end-to-end
negotiation lifecycle with
in-depth RFX and Auctions
capabilities for
procurement initiatives of
any size and complexity
Contract Management
To manage and control
contractual obligations
across the supply chain
ensuring enterprise-wide
visibility and compliance
management.
Programme Management
To provide project management and control for full lifecycle
of each procurement initiative including workflow and
collaboration support for cross-functional teams
Spend Visibility
To systematically and
comprehensively monitor
organizational spend in
order to better formulate
tactical-strategic
procurement decisions
Vendor Management
To provide detailed and
updated intelligence on
suppliers in terms of
characteristics,
capabilities and past
performance. Includes
advanced workflow
support for supplier
evaluation and
qualification.

21. Building the supplier profile throughout the journey
Vendor Management
Provides a robust approach to appropriate pre-qualification and
approval of suppliers and supplier access to relevant category
specific opportunities. Vendor Management optimises all
aspects of the relationship with current and potential suppliers,
reducing the time and effort invested by buyers and suppliers
through standardised, collaborative and automated web based
procedures.

22. The need to…

23. 23
Awareness – Programme Management
Sourcing
To support the end-to-end
negotiation lifecycle with
in-depth RFX and Auctions
capabilities for
procurement initiatives of
any size and complexity
Contract Management
To manage and control
contractual obligations
across the supply chain
ensuring enterprise-wide
visibility and compliance
management.
Programme Management
To provide project management and control for full lifecycle
of each procurement initiative including workflow and
collaboration support for cross-functional teams
Spend Visibility
To systematically and
comprehensively monitor
organizational spend in
order to better formulate
tactical-strategic
procurement decisions
Vendor Management
To provide detailed and
updated intelligence on
suppliers in terms of
characteristics,
capabilities and past
performance. Includes
advanced workflow
support for supplier
evaluation and
qualification.

24. Programme Management captures sourcing best practices and ensures consistent,
repeatable results
Programme Manager
Enable Best-Practice Sourcing
Processes by managing and
Enforcing workflow
Routings/Approvals, Improving
Buyer-Stakeholder Collaboration and
ultimately leading to an Increase %
of Spend under coverage

25. 25
Awareness – Sourcing and Evaluation
Sourcing
To support the end-to-end
negotiation lifecycle with
in-depth RFX and Auctions
capabilities for
procurement initiatives of
any size and complexity
Contract Management
To manage and control
contractual obligations
across the supply chain
ensuring enterprise-wide
visibility and compliance
management.
Programme Management
To provide project management and control for full lifecycle
of each procurement initiative including workflow and
collaboration support for cross-functional teams
Spend Visibility
To systematically and
comprehensively monitor
organizational spend in
order to better formulate
tactical-strategic
procurement decisions
Vendor Management
To provide detailed and
updated intelligence on
suppliers in terms of
characteristics,
capabilities and past
performance. Includes
advanced workflow
support for supplier
evaluation and
qualification.

26. Sourcing Evaluation
Capabilities include ability to
collaborate prior to publishing RFx ,
Multiple question types, including
robust excel-like worksheets,
comparison tools, scenario analysis,
integrated auction monitor and
integration with other modules.

27. 27
Awareness, Identification, Mitigation and Management
Sourcing
To support the end-to-end
negotiation lifecycle with
in-depth RFX and Auctions
capabilities for
procurement initiatives of
any size and complexity
Contract Management
To manage and control
contractual obligations
across the supply chain
ensuring enterprise-wide
visibility and compliance
management.
Programme Management
To provide project management and control for full lifecycle
of each procurement initiative including workflow and
collaboration support for cross-functional teams
Spend Visibility
To systematically and
comprehensively monitor
organizational spend in
order to better formulate
tactical-strategic
procurement decisions
Vendor Management
To provide detailed and
updated intelligence on
suppliers in terms of
characteristics,
capabilities and past
performance. Includes
advanced workflow
support for supplier
evaluation and
qualification.

28. Contract Management allows buyers to quickly create, and store
contracts with full version history, reporting and approvals
Contract Management
Capabilities include contract templates
allow users to start from approved
contracts, maintain one active version
and track all changes approvals allow
review and comment, single repository
for all contract information and
attachments and proactive Alert, Price,
KPI Management

29. Vendor Relationship Management provides a framework for companies to
effectively track and manage vendor performance, compliance and identify
risk, trends and problem areas and monitor key performance areas
Provides for a single repository for all vendor
information and documents regarding Supplier
Management. This includes fully configurable
information templates, alerts, Qualification guides
etc
Vendor Relationship Management

30. The need to…

31. Identify, Mitigate and Manage Risk
Supplier profile continues throughout …

32. Vendor Performance Management
Supplier Relationship Management
Supplier Risk Management
Supplier Information Management

33. Risk Strategies
Adapted from Peter Kraljic model
Insure
Accept
Eliminate
Reduce
Whilst it is not possible to predict all sources of risk, it is important to mitigate as
many risks as possible to protect your category or
organisation

34. Customer Case Study

35. • Collaboration of 21 Welsh Local Authorities
• Regional Commissioning Unit
• Collaborative opportunities for sector wide commissioning and procurement
• Improved Outcomes
• Value for money
• Quality Services
• Sufficiency and choice
• Efficiency
Children's Commissioning Consortium Cymru Case
Study

36. • Looked after children placement
services
– foster and residential placements
– High specification individualised
services
– high quality services which
deliver positive outcomes for
children and young people
– High risk service area
• Safeguarding
• Stability
• vulnerable children
• Meeting complex needs-unmet needs
• Information sharing between commissioners
and regulatory bodies
• Regulation and minimum standards
• High public profile/interest
• Corporate parental responsibility
• Demand led service-risk of escalating
unbudgeted costs
• Contractual
• Market and supply issues
Service Issues

37. • Needs and Market Analysis
• Collaborative Frameworks-Foster and Residential
• Individual Placement Matching
• Collaborative Performance Evaluation
• eCM
Solution

38. • Quality Performance Assessment
• Collaborative Risk Management
• 360 Outcomes Tracking
• Continuous Improvement cycle
Collaborative Performance Evaluation

39. • Completed annually with all
Framework Suppliers
• Includes :-
– Organisational development
– Documentation and Inspection
– Outcomes
– Quality
• Used to review Framework tier
positions and ongoing continuous
improvement and development
Quality Performance Assessment

40. Collaborative Performance Review
• Evidence good and poor
performing providers
• Manage risk
• Access accurate and reliable
management information.
• Secure and auditable online
communication portal
• Set milestones to achieve
improved value for money and
quality
Collaborative Quality Assurance and Risk Management
Across Authorities/Across Suppliers

41. Collaborative Risk Management

42. • Online survey capturing perspective
of service user, carer and social
worker
• Designed with participation of young
people with care experience
– Over 80% of young people who responded
felt their outcomes were being met by their
placement most or all of the time
360 Outcomes Tracking

43. • Quality and
outcomes have
improved
• – Traffic light indicators
• – 40 % increase in
green indicators for
2014
• – Performance
improved from 20 red
indicators in
performance categories
for 2013 to no red
indicators in 2014
Quality and Outcomes

44. Internal Stakeholders
• Reporting issues/risks
• Adapting to consistent regional
processes
• Structures and capacity
• Non framework providers
• Collaborative decision making
Suppliers
• Impact on market position
• Fairness and transparency
• Business continuity and planning
• Feedback welcome
• Improving standards
• New business models
Issues

45. • Price Efficiencies
• Increase in local placement capacity
• new care models and market facilitation
• Robust collaborative risk management systems
• Improved information sharing
• Reduction of identified risks and suspension
or closure of poor care settings
• Preference given to high quality providers via
Tier review
• Improved relationship and basis for partnership
Benefits

46. Q&A

47. Please Watch
Please Watch