4. How to Control Supply Chain Risks
1. What is the definition of supply chain risk?
2. Why supply chain risk controls are important to minimize current & future disruptions
3. What is the difference between Supply Chain:
a. Risk identification & assessment
b. Risk control & monitoring
4. How to develop a risk control & monitoring framework for your supply chain
Topics for Today’s Discussion
20. Information Shapes Decisions and
Impact Interconnected Stakeholders in the Supply Chain
Manufacturer’s Perspective
Manage financial condition
Manage operational state
risk
information
BUSINESS PERFORMANCE
MANAGEMENT
Manufacturer 1 Perception:
Regulation will
impact our margins
We can then
maintain our margins
receive change in
regulatory policy
Reaction:
find a lower price supplier
21. Risk control status of your supply chain
...capture risk information across your supply chain
that can impact your business?
...store the risks in a central risk register?
...implement risk control measures at the process level?
...monitor risk thresholds?
...evaluate the cause and effect of the risks?
...communicate risk violations to impacted stakeholders?
NO
out of control
...shape decisions based on current and future risk states?
YES
YES
YES
YES
YES
YES
YES
In Control
Does your company...
1. It’s not only about collaborating about operational business information. That doesn’t
tell you what you need to know about supply chain risks. “In G-d we trust. Everyone
else bring data”
22. Risk Control
& Monitoring
Risk Identification
& Assessment
Risk control status of your supply chain
Does your company...
...capture risk information across your supply chain
that can impact your business?
...store the risks in a central risk register?
...implement risk control measures at the process level?
...monitor risk thresholds?
...evaluate the cause and effect of the risks?
...communicate risk violations to impacted stakeholders?
...shape decisions based on current and future risk states?
1. It’s not only about collaborating about operational business information. That doesn’t
tell you what you need to know about supply chain risks. “In G-d we trust. Everyone
else bring data”
24. Risk Information
Risk perspective
BUSINESS PROCESS MANAGEMENT
RISK-REWARD DECISIONS
STAKEHOLDER COMMUNICATIONS
RISK-REWARD PROCESSES
Why supply chain risk controls are important
to minimize current & future disruptions
RISK-REWARD PROCESSES
YOU
25. Who has experienced supply chain risks
in their business?
Audience question
Why supply chain risk controls are important
to minimize current & future disruptions
26. What types of supply chain risks
have you experienced?
Audience question
Why supply chain risk controls are important
to minimize current & future disruptions
27. What are some challenges you’ve experienced
to control those risks?
Audience question
Why supply chain risk controls are important
to minimize current & future disruptions
28. How could your supply chain risks
affect your business?
Audience question
Why supply chain risk controls are important
to minimize current & future disruptions
29. How to develop a Risk Control & Monitoring Framework
For your supply chain
30. How to Develop a Risk Control & Monitoring Framework
ForYour Supply Chain
attain
adaptability
REALIZE
efficiency
ACHIEVE
effectiveness
RISK
CONTROL
EXCELLENCE
Analytics
Process Execution
Frameworks
Risk
technology
capabilities
Risk-‐centric
processes
Risk-‐focused
people
skills
31. How to Develop a Risk Control & Monitoring Framework
ForYour Supply Chain
Risk
technology
capabilities Analytics
Process Execution
Frameworks
Risk-‐centric
processes
Risk-‐focused
people
skills
attain
adaptability
REALIZE
efficiency
ACHIEVE
effectiveness
RISK
CONTROL
EXCELLENCE
32. How to Develop a Risk Control & Monitoring Framework
ForYour Supply Chain
risk
analysts
decision
makers
risk
monitors
business
stakeholders
business
stakeholder
communicators
Risk-focused
people skills
risk
communicators
Supply Chain
Risk Control Skills
2
3
risk
aggregators1
5
7
6
4
33. How to Develop a Risk Control & Monitoring Framework
ForYour Supply Chain
Analytics
Risk-‐focused
people
skills
Risk-‐centric
processes
Process Execution
Frameworks
Risk
technology
capabilities
attain
adaptability
REALIZE
efficiency
ACHIEVE
effectiveness
RISK
CONTROL
EXCELLENCE
34. How to Develop a Risk Control & Monitoring Framework
ForYour Supply Chain
risk
aggregation
risk
analysis
risk-based
decision-making
risk
monitoring
stakeholder
communication
Supply Chain
Risk Control
Processes
Risk-centric
processes
risk
communication
2
3
1
4
6
5
35. How to Develop a Risk Control & Monitoring Framework
ForYour Supply Chain
Risk
technology
capabilities Analytics
Risk-‐focused
people
skills
Risk-‐centric
processes
Process Execution
Frameworks
attain
adaptability
REALIZE
efficiency
ACHIEVE
effectiveness
RISK
CONTROL
EXCELLENCE