In many organisations, Procurement is beginning to see Risk as part of their responsibilities, second only to savings. In this presentation we will look at identifying risk and consider how it might be treated to arrive at the best Risk solution for your organisation.
Supply chain risk management (SCRM) is "the implementation of strategies to manage both everyday and exceptional risks along the supply chain based on continuous risk assessment with the objective of reducing vulnerability and ensuring continuity".
SCRM attempts to reduce supply chain vulnerability via a coordinated holistic approach, involving all supply chain stakeholders, which identifies and analyses the risk of failure points within the supply chain. Mitigation plans to manage these risks can involve logistics, finance and risk management disciplines; the ultimate goal being to ensure supply chain continuity in the event of a scenario which otherwise have interrupted normal business and thereby profitability.
In many organisations, Procurement is beginning to see Risk as part of their responsibilities, second only to savings. In this presentation we will look at identifying risk and consider how it might be treated to arrive at the best Risk solution for your organisation.
Supply chain risk management (SCRM) is "the implementation of strategies to manage both everyday and exceptional risks along the supply chain based on continuous risk assessment with the objective of reducing vulnerability and ensuring continuity".
SCRM attempts to reduce supply chain vulnerability via a coordinated holistic approach, involving all supply chain stakeholders, which identifies and analyses the risk of failure points within the supply chain. Mitigation plans to manage these risks can involve logistics, finance and risk management disciplines; the ultimate goal being to ensure supply chain continuity in the event of a scenario which otherwise have interrupted normal business and thereby profitability.
Discussing the importance of supply chain risk management, taking the case of mining industry. The slides explain what the internal and external challenges, the four types of risks, the risk management process, and the mitigation strategies.
Supply Chain Management as a discipline has witnessed a tremendous growth during the last two decades. Following are the some of risks or issues due to operational problems in supply chain management.
Demand Management
Inventory Management
Secondary Production Planning
etc.
This complete deck covers various topics and highlights important concepts. It has PPT slides which cater to your business needs. This complete deck presentation emphasizes Procurement Risk Management PowerPoint Presentation Slides and has templates with professional background images and relevant content. This deck consists of total of thirty seven slides. Our designers have created customizable templates, keeping your convenience in mind. You can edit the colour, text and font size with ease. Not just this, you can also add or delete the content if needed. Get access to this fully editable complete presentation by clicking the download button below. http://bit.ly/2uCY6i5
This white paper discuss on building a supply chain beyond risks factors surrounding organization operations. Companies today work on several supply chain strategies to improve their supply chain.
Risk factors in as-is process and how to eliminate those risks.
Are you planning to design a professional PPT on the concept of supply chain management introduction? Do not worry! SlideTeam has come up with the predesigned supply chain management introduction PowerPoint presentation slides. Using this supply chain management overview PPT presentation, you can highlight the supply process of goods and services to the customers and manufacturers. This demand chain management presentation PPT includes a template on the relevant subjects such as introduction, components of the supply chain, company timeline, supply chain management advantages, SCM, supply chain management goals, SCM bifurcation, supply chain management and logistics, and SCM control tower. Using these supplier relationship management PowerPoint slides, you can describe the idea of customer relationship management, customer service management, demand-management style, order fulfillment, manufacturing flow management, supplier relationship management, product development, returns management, production planning, operation management, quality management, and enterprise resource planning. Use this PowerPoint presentation; you can throw the light on the supply chain tasks. So, do not delay, download this supply chain management introduction description presentation PPT. Boost deflated egos with our Supply Chain Management Introduction PowerPoint Presentation Slides. Give them cause to be full of confidence again.
the various factors that expose a global supply chain to risk. also known as the vulnerability of global supply chains to risks. case study's from KFC, YAHOO, APPLE, INTEL, NIKE companies to learn how this affected them.
What Every Procurement Professional Should Know About Supplier Risk Managemen...IBM Watson Commerce
See this on-demand webinar on Supplier Risk, "What Every Procurement Professional Should Know About Supplier Risk Management: The IBM Story."
You will learn:
-Precise framework around supplier risk management and why and where it’s needed
-How IBM manages supplier qualifications, compliance, financial continuity and supplier code of conduct
-Common mistakes made and solutions to supplier risk management
View here: http://procureconwest.wbresearch.com/the-ibm-story-mloc-h-iframe
Information sharing is a major challenge in SCM due to the geographical spread of partners and monumental paper work involved across countries and regions. Digitisation impacts the flow of goods, funds and information. It is at the threshold of introducing the Smart Factory where all flows are automated. How relevant are these technologies for India? What can be the Smart Approach for India in sequencing the adoption of these technologies? We present a suggested approach here.
A brief overview of Supply Chain Management including explanation of different types of Stock. This documents contains the brief explanation of Demand and Supply
Top 10 Logistics Risks in the Spirit of David LettermanThomas Tanel
The simple fact is that in today’s longer, more global supply chains, product moves over greater distances and across more multinational borders than in the more localized supply chains of the past. The coordination and execution required for international shipments has always been a challenge. But now we find that market conditions, security considerations, transportation versus inventory costs of ownership, increasing regulatory and political pressures, and even natural events (such as storms and earthquakes) with increasing frequency and havoc are converging in such a way that it makes the task even more daunting.
Proactive discovery and visibility of logistics risks is the key to the prevention and management of supply chain disruptions. And a key ingredient in managing supply chain disruptions is risk identification; so attend this valuable presentation to find out what the Top 10 Logistics Risks are (in the spirit of David Letterman) that you will be facing in the coming years. Donald Rumsfeld, former US Secretary of Defense quipped in 2002, “Reports that say that something hasn’t happened are always interesting to me, because, as we know, there are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns-—-the ones we don’t know we don’t know.”
General Gus Pagonis, in charge of logistics during the First Gulf War in 1991 describes it best in his own words, “Logisticians deal with unknowns. They attempt to eliminate unknowns, one by one, until they are confident that they have done away with the possibility of paralyzing surprises.” Are you equipped to succeed in a supply chain world of increasing difficulty and insecurity and multiple interconnected supply chains? Do you have the correct response to a supply disruption in the supply chain and the attendant Top 10 Logistics Risks?
Why is logistics risk management in the supply chain so important now? You’ve spent years streamlining operations, reengineering processes, integrating with partners, implementing purchasing, contract management and supply chain systems, and moving production to low-cost, offshore locations. You’ve done all of this in order to get a global supply chain that really works. Finally, you can take a deserved rest, right? Unfortunately, the answer is no-—-you must learn to continuously adapt to a volatile, uncertain, complex, and ambiguous logistics environment!
As noted by Charles Darwin, “It is not the strongest of the species that survives, or the most intelligent that survives. It is the one that is the most adaptable to change.”
Risk management is about having a systematic way of dealing with thin
Kuala Lumpur - PMI Global Congress 2009 - Risk ManagementTorsten Koerting
Presentation on Risk Management Tools, like Risk Register, Risk Profile Presentation Options, How to facilitate a Risk Assessment and effective Processes for day to day application of Risk Management in your Project
Discussing the importance of supply chain risk management, taking the case of mining industry. The slides explain what the internal and external challenges, the four types of risks, the risk management process, and the mitigation strategies.
Supply Chain Management as a discipline has witnessed a tremendous growth during the last two decades. Following are the some of risks or issues due to operational problems in supply chain management.
Demand Management
Inventory Management
Secondary Production Planning
etc.
This complete deck covers various topics and highlights important concepts. It has PPT slides which cater to your business needs. This complete deck presentation emphasizes Procurement Risk Management PowerPoint Presentation Slides and has templates with professional background images and relevant content. This deck consists of total of thirty seven slides. Our designers have created customizable templates, keeping your convenience in mind. You can edit the colour, text and font size with ease. Not just this, you can also add or delete the content if needed. Get access to this fully editable complete presentation by clicking the download button below. http://bit.ly/2uCY6i5
This white paper discuss on building a supply chain beyond risks factors surrounding organization operations. Companies today work on several supply chain strategies to improve their supply chain.
Risk factors in as-is process and how to eliminate those risks.
Are you planning to design a professional PPT on the concept of supply chain management introduction? Do not worry! SlideTeam has come up with the predesigned supply chain management introduction PowerPoint presentation slides. Using this supply chain management overview PPT presentation, you can highlight the supply process of goods and services to the customers and manufacturers. This demand chain management presentation PPT includes a template on the relevant subjects such as introduction, components of the supply chain, company timeline, supply chain management advantages, SCM, supply chain management goals, SCM bifurcation, supply chain management and logistics, and SCM control tower. Using these supplier relationship management PowerPoint slides, you can describe the idea of customer relationship management, customer service management, demand-management style, order fulfillment, manufacturing flow management, supplier relationship management, product development, returns management, production planning, operation management, quality management, and enterprise resource planning. Use this PowerPoint presentation; you can throw the light on the supply chain tasks. So, do not delay, download this supply chain management introduction description presentation PPT. Boost deflated egos with our Supply Chain Management Introduction PowerPoint Presentation Slides. Give them cause to be full of confidence again.
the various factors that expose a global supply chain to risk. also known as the vulnerability of global supply chains to risks. case study's from KFC, YAHOO, APPLE, INTEL, NIKE companies to learn how this affected them.
What Every Procurement Professional Should Know About Supplier Risk Managemen...IBM Watson Commerce
See this on-demand webinar on Supplier Risk, "What Every Procurement Professional Should Know About Supplier Risk Management: The IBM Story."
You will learn:
-Precise framework around supplier risk management and why and where it’s needed
-How IBM manages supplier qualifications, compliance, financial continuity and supplier code of conduct
-Common mistakes made and solutions to supplier risk management
View here: http://procureconwest.wbresearch.com/the-ibm-story-mloc-h-iframe
Information sharing is a major challenge in SCM due to the geographical spread of partners and monumental paper work involved across countries and regions. Digitisation impacts the flow of goods, funds and information. It is at the threshold of introducing the Smart Factory where all flows are automated. How relevant are these technologies for India? What can be the Smart Approach for India in sequencing the adoption of these technologies? We present a suggested approach here.
A brief overview of Supply Chain Management including explanation of different types of Stock. This documents contains the brief explanation of Demand and Supply
Top 10 Logistics Risks in the Spirit of David LettermanThomas Tanel
The simple fact is that in today’s longer, more global supply chains, product moves over greater distances and across more multinational borders than in the more localized supply chains of the past. The coordination and execution required for international shipments has always been a challenge. But now we find that market conditions, security considerations, transportation versus inventory costs of ownership, increasing regulatory and political pressures, and even natural events (such as storms and earthquakes) with increasing frequency and havoc are converging in such a way that it makes the task even more daunting.
Proactive discovery and visibility of logistics risks is the key to the prevention and management of supply chain disruptions. And a key ingredient in managing supply chain disruptions is risk identification; so attend this valuable presentation to find out what the Top 10 Logistics Risks are (in the spirit of David Letterman) that you will be facing in the coming years. Donald Rumsfeld, former US Secretary of Defense quipped in 2002, “Reports that say that something hasn’t happened are always interesting to me, because, as we know, there are known knowns; there are things we know we know. We also know there are known unknowns; that is to say we know there are some things we do not know. But there are also unknown unknowns-—-the ones we don’t know we don’t know.”
General Gus Pagonis, in charge of logistics during the First Gulf War in 1991 describes it best in his own words, “Logisticians deal with unknowns. They attempt to eliminate unknowns, one by one, until they are confident that they have done away with the possibility of paralyzing surprises.” Are you equipped to succeed in a supply chain world of increasing difficulty and insecurity and multiple interconnected supply chains? Do you have the correct response to a supply disruption in the supply chain and the attendant Top 10 Logistics Risks?
Why is logistics risk management in the supply chain so important now? You’ve spent years streamlining operations, reengineering processes, integrating with partners, implementing purchasing, contract management and supply chain systems, and moving production to low-cost, offshore locations. You’ve done all of this in order to get a global supply chain that really works. Finally, you can take a deserved rest, right? Unfortunately, the answer is no-—-you must learn to continuously adapt to a volatile, uncertain, complex, and ambiguous logistics environment!
As noted by Charles Darwin, “It is not the strongest of the species that survives, or the most intelligent that survives. It is the one that is the most adaptable to change.”
Risk management is about having a systematic way of dealing with thin
Kuala Lumpur - PMI Global Congress 2009 - Risk ManagementTorsten Koerting
Presentation on Risk Management Tools, like Risk Register, Risk Profile Presentation Options, How to facilitate a Risk Assessment and effective Processes for day to day application of Risk Management in your Project
Supply chain risk management material. Its most important areas of study know attracting academic scholar and practitioner. supply chain risk management is fast growing
MBA 6941, Managing Project Teams 1 Course Learning Ou.docxaryan532920
MBA 6941, Managing Project Teams 1
Course Learning Outcomes for Unit VI
Upon completion of this unit, students should be able to:
4. Explore the dynamics of project teams.
4.1 Describe the positive and negative risks of a project and how they can affect the project team.
4.2 Identify risk response plans based on the key processes of project risk management and how
team members can play a role in these plans.
Reading Assignment
Chapter 14:
Risk
Unit Lesson
Project risk is an uncertain event in the future, and if it occurs, it will have a positive or negative impact on one
or more project objectives, including scope, schedule, cost, and quality. Risk may have one or more causes
such as requirement, assumption, and constraints or conditions that create the possibility of negative or
positive outcomes.
It is normal even for the extremely organized and most carefully planned project to run into unexpected
troubles. Several factors such as inadequate resources, the project environment, the project management
processes, and other facets can contribute to project risks. We will be able to anticipate some risks in
advance and come up with response plans; other risk events will occur unannounced during the project.
Team members can get sick or quit unexpectedly, sudden weather change can drastically limit your options,
and even resources that you are depending on may become unavailable. The purpose of risk management is
to identify potential problems that could cause concern for your project, analyze how likely and at what
frequency they will occur, take preventive actions for the ones you can avoid, and minimize the impacts and
probability for the ones you cannot avoid. There are two generalized types of risk:
business risk (risk of loss/threat or gain/opportunity) and
pure risk (only a risk of loss/threat)—are sometimes also called insurable risks and can include
events like fire, theft, personal injury, and other elements.
Opportunity (Positive Risk): These are the risks with positive effects. It is a favorable situation in the
organizational environment. Some examples include the arrival of new technology or the removal of an
international trade barrier. In addition, the fulfillment of a previously unfulfilled customer need may have a
significant positive impact on your project.
Threats (Negative Risk): These are external elements in the environment that arise from political, economic,
social, and technological (PEST) forces and can cause trouble for the business. Some examples can include
new regulations, increased trade barriers, or the emergence of substitute products.
A few additional threats include the following:
anything external that might cause problems, damage, or injury;
technological developments that may make your offerings obsolete;
market changes that may result from changes in customer needs, competitor’s moves, or
demographic shifts; or
the ...
effective risk management systems can best be achieved in an atmosphere of trust.
Successful risk management provides assurance that the organisation’s objectives will be
achieved within an acceptable degree of residual risk.13 It also creates an environment in which
quality improvement occurs as the natural consequence of the identification, assessment and
elimination or minimisation of risk. Risk management can therefore also be considered as an
aspect of the organisation’s ongoing continuous quality improvement program.
If a project manager is consumed with managing risk, there is little time to manage opportunities. Good risk management is not about fear of failure, it is about removing barriers to success. This is when opportunity management emerges.
Risk management Phase 1-5 Individual Project
Table of Contents
Introduction 3
Project Outline 3
Project risk identification 4
Project risk assessment 6
Project Risks, Responses Strategy 7
Project Risks Monitoring & Control Plan 10
Project Risks WBS & Budget Updates 11
Project Risks, Communications Plan 11
References 12
Introduction
The project that is planned by the company is to divest and move into a global perspective. Let’s ay for instance a possible expansion in the expansion of an oil refinery plant, such as a sulphur plant, my project will be to research Savage Gulf Sulphur Services. The project is supposed to ensure that the company will generate more revenue, and then it shall move into a global perspective. With the project, the company shall also increase its production due to large demand generated by the new market in the globe. Every project is faced with a certain degree of risk in the activities that it takes in an organization. It is important for organizations should carry out risk assessment procedures that are inclined in ensuring that an effective strategy shall be formulated to eliminate risk. This paper will discuss the risk management strategy and the processes that are taken in the management of risk in an organizational structure.
Project Outline
The project is it intended to increase the organized capacity and move into the global market structure. This will involve the purchase of new factors of production such as land, investors and business owners invest large amounts of capital to such investments. The project will also
Risk management justification
Risk management is identified and can be described as an assesment that has all these prioritization of risks, the management of risk could involve precise coordination and ecomonical application strategies with ereasons to minimize, control and monitor the probability and impact of unfortunate events. Risk management also helps in maximization and the act of realization of opportunities. In an organizational structure, risk management has a variety of functions which makes it an important department in an organization, based on the many roles that the risk management. This is the implementation of a strong and effective risk management and controls within securities firm, a helps in promoting stability throughout the entire firm. Risk management controls are divided into two categories. The internal and external control categories help in providing useful and effective control systems. The internal controls help in protecting the firms against market, credit, operational and legal risks. Secondly, it helps in protecting the financial industry from all the systemic risks in the organization structure (Merna, 2008)
Risk management is useful in protecting the firm's customers from enormous and large non-market related losses such as misappropriation of resources, fraud and firm failure. Such failures can result in enormous risk in the organization. R ...
Table of Contents
Introduction 3
Project Outline 3
Project risk identification 4
Project risk assessment 6
Project Risks, Responses Strategy 7
Project Risks Monitoring & Control Plan 10
Project Risks WBS & Budget Updates 11
Project Risks, Communications Plan 11
References 12
Introduction
The project that is planned by the company is to divest and move into a global perspective. Let’s ay for instance a possible expansion in the expansion of an oil refinery plant, such as a sulphur plant, my project will be to research Savage Gulf Sulphur Services. The project is supposed to ensure that the company will generate more revenue, and then it shall move into a global perspective. With the project, the company shall also increase its production due to large demand generated by the new market in the globe. Every project is faced with a certain degree of risk in the activities that it takes in an organization. It is important for organizations should carry out risk assessment procedures that are inclined in ensuring that an effective strategy shall be formulated to eliminate risk. This paper will discuss the risk management strategy and the processes that are taken in the management of risk in an organizational structure.
Project Outline
The project is it intended to increase the organized capacity and move into the global market structure. This will involve the purchase of new factors of production such as land, investors and business owners invest large amounts of capital to such investments. The project will also
Risk management justification
Risk management is identified and can be described as an assesment that has all these prioritization of risks, the management of risk could involve precise coordination and ecomonical application strategies with ereasons to minimize, control and monitor the probability and impact of unfortunate events. Risk management also helps in maximization and the act of realization of opportunities. In an organizational structure, risk management has a variety of functions which makes it an important department in an organization, based on the many roles that the risk management. This is the implementation of a strong and effective risk management and controls within securities firm, a helps in promoting stability throughout the entire firm. Risk management controls are divided into two categories. The internal and external control categories help in providing useful and effective control systems. The internal controls help in protecting the firms against market, credit, operational and legal risks. Secondly, it helps in protecting the financial industry from all the systemic risks in the organization structure (Merna, 2008)
Risk management is useful in protecting the firm's customers from enormous and large non-market related losses such as misappropriation of resources, fraud and firm failure. Such failures can result in enormous risk in the organization. Risk management also helps in the act or protecting the fi ...
We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
How to Make a Field invisible in Odoo 17Celine George
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How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
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This is a presentation by Dada Robert in a Your Skill Boost masterclass organised by the Excellence Foundation for South Sudan (EFSS) on Saturday, the 25th and Sunday, the 26th of May 2024.
He discussed the concept of quality improvement, emphasizing its applicability to various aspects of life, including personal, project, and program improvements. He defined quality as doing the right thing at the right time in the right way to achieve the best possible results and discussed the concept of the "gap" between what we know and what we do, and how this gap represents the areas we need to improve. He explained the scientific approach to quality improvement, which involves systematic performance analysis, testing and learning, and implementing change ideas. He also highlighted the importance of client focus and a team approach to quality improvement.
Palestine last event orientationfvgnh .pptxRaedMohamed3
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2. What is Risk
RISK means the possibilities of meeting changes or of suffering
harm or loss.
OR
RISK is a phenomena or event that when occurred causes
destruction
RISK MANAGEMENT is the art of reducing the possibilities of a
risk and managing those risks in such a way that their impacts
can be reduced
3. Need of Risk Management
Enterprises relying on others firms for their success. Historically,
enterprises have spent less than a third of their budgets on
purchased goods and services, having relied on internal sources
for these.
Today, many enterprises spend most of their budget on
purchased goods and services. This is in large part because of the
advantages enterprises have found in strategies such as
globalization, outsourcing, supply-base rationalization, just-in-
time deliveries, and lean inventories.
While globalization, extended supply chains, and supplier
consolidation offer many benefits in efficiency and effectiveness,
they can also make supply chains more brittle and can increase
risks of supply-chain disruption.
For eg. March 2011 Tohoku earthquake and subsequent tsunami
in Japan showed how one event can disrupt many elements of
global supply chains, including supply, distribution, and
communications
4. Risk Management process
Identifying internal and external environments
Risk identification and assessment
Risk treatment
Continual monitoring and review of risks and their
treatment.
5. Risk Management process
Identifying Internal and External
environment
Risk Evaluation
Risk Treatment
Risk Analysis
Risk Identification
Risk Assessment
6. Supply chain management Risk
“supply-chain risk” as the likelihood and
consequence of events at any point in the end-
to-end supply chain, from sources of raw
materials to end use of customers.
“supply-chain risk management” as the
coordination of activities to direct and control
an enterprise’s end-to-end supply chain with
regard to supply-chain risks.
7. Potential Risks to an Organization and Supply Chain
External, End-to-End Risks:
• Natural disasters • Labor unavailability
• Accidents • Market challenges
• Sabotage, terrorism, crime, war • Lawsuits
• Political uncertainty • Technological trends
Supplier risks:
• Physical and regulatory risks • Management risks
• Production problems • Upstream supply risks
• Financial losses and premiums
8. Distribution Risks:
• Infrastructure unavailability • Warehouse inadequacies
• Lack of capacity • IT system inadequacies or failure
• Labor unavailability • Long, multi-party supply pipelines
• Cargo damage or theft
Internal Enterprise Risks:
• Operational • Financial uncertainty
• Political uncertainty • Facility unavailability
• Demand variability • Testing unavailability
• Personnel availability • Enterprise underperformance
• Design uncertainty • Supplier relationship management
• Planning failures
Potential Risks to an Organization and Supply Chain
9. Identifying Internal and External
Environments
Risks exist at discrete levels and entities within an
organization
Manufacturing risks exist at manufacturing sites.
Supplier risks exist at supplier sites (including those of
sub-tier suppliers).
Distribution risks exist at suppliers and in upstream and
downstream transportation and logistics systems.
Legislative, compliance, intellectual property, and
regulatory risks exist at the country or regional level for
multinational enterprises.
Finally, strategic risks exist at the business-unit or
corporate level.
11. Risk Identification
Two type of Risks:
1. Retrospective risks:
Retrospective risks are those that have previously occurred, such as
incidents or accidents.
It’s easier to believe something if it has happened before. It is also easier
to quantify its impact and to see the damage it has caused.
Q. How to identify retrospective risk?
Hazard or incident logs or registers
Audit reports
Customer complaints
Accreditation documents and reports
Past staff or client surveys
Newspapers or professional media, such as journals or websites.
12. Two type of Risks:
2. Prospective risks:
Prospective risks are often harder to identify. These are things that have
not yet happened, but might happen some time in the future.
Identification should include all risks, whether or not they are currently
being managed. The rationale here is to record all significant risks and
monitor or review the effectiveness of their control.
Q. How to identify
Brainstorming with staff or external stakeholders
Researching the economic, political, legislative and operating environment
Conducting interviews with relevant people and/or organizations
Undertaking surveys of staff or clients to identify anticipated issues or
problems
Flow charting a process
Reviewing system design or preparing system analysis techniques.
Risk Identification
13. Risk Analysis & Evaluation
Risk analysis process is to estimate the likelihood and consequence of
risks facing a firm and accordingly prioritize them for ultimate
treatment.
2x2 Impact/Probability Matrix:
Impact
Probability
Low
High
Low High
This step is about
deciding whether risks
are acceptable or
need treatment.
14. Risk Acceptance
A risk may be accepted for the following reasons:
The cost of treatment far exceeds the benefit, so that acceptance is the
only option (applies particularly to lower ranked risks)
The level of the risk is so low that specific treatment is not appropriate
with available resources
The opportunities presented outweigh the threats to such a degree
that the risks justified
The risk is such that there is no treatment available, for example the
risk that the business may suffer storm damage.
Ignoring risk doesn’t make the risk go away!
15. Risk treatment strategy
Avoidance – Changing a project objective to eliminate the threat posed
by an adverse risk event.
Transference – Shifting the negative impact of a threat, along with the
ownership of the response, to a third party.
Mitigation – Reducing the Probability or Impact of an adverse risk event
(threat) to an acceptable threshold.
Acceptance – The project team decides not to change project
objectives to deal with the risk.
Passive acceptance: no action, deal with threats as they occur
(workarounds)
Active acceptance: establish a contingency reserve to handle risks
16. Exploit – This strategy seeks to eliminate the uncertainty with an
opportunity by changing a project objective to ensure it happens.
Share – Allocating ownership of the positive risk event to a third party
who is best able to capture the opportunity for the project.
Enhance – Increasing the probability and/or positive impact of an
opportunity.
Contingency – Not a risk response, but an output from risk planning.
Developed for actively accepted project risks. This is typically defined
as time or funds.
Risk treatment strategy
17. Continual Monitoring of Risks and Treatment
After identifying and treating risks,
Firm should implement a monitoring program, evaluating plans,
procedures, and capabilities through periodic review, testing, post-
incident reports, and other exercises.
It should check conformity and effectiveness of the program, establish,
implement, and maintain procedures for monitoring and taking corrective
action as necessary.
Testing and Adjusting the Plan if is requires in order to reduce
cost/threat
Areas of Continual Adjustment: If the risk is more obvious and will
remain with process due government or their regulatory environment
18. Conclusion
Effective supply-chain risk management (SCRM) is essential to a successful
business. As globalization increases, so too do the critical
interdependencies and complexities between suppliers, logistics
providers, and a successful enterprise. A breakdown in any part of the
supply chain connecting these entities can potentially lead to
consequences.
While no risk management program can fully predict, mitigate, or prevent
all risks or consequences, companies that proactively implement a supply-
chain risk-management program will be more resilient and prepared for
the day when a "risk" becomes "real."