Curriculum In Risk
Risk Management Across Global Supply Chain
Application in Procurement
In Today’s competitive market, Risk Management represents a new shift in businesses paradigm. As the economies become more service driven and globally oriented, businesses cannot afford to let new, unforeseen areas of risk remain unidentified and unattended. Currency fluctuations, human resources in foreign countries, evaporating distribution channels, corporate governance, unprecedented dependence on technology, flow of raw material to manufacturing sites, manufacturing process and the logistics of delivery of finished goods are just a few of the new risks businesses must assess and manage.
Many organizations are choosing to implement an Enterprise Risk Management process to ensure that a uniform approach to risk identification, measurement and treatment is utilized across the organization. By adopting this proactive approach to managing risk, companies can move from a locally risk management approach to a deeper integration of its various components in the businesses.
The supply line utilized by a typical business can cause significant impact and present a major risk to the viability of ongoing business operations, i.e., to business continuity. To assess the full dimension of this risk, the business impact and economic value resulting from the supply line disturbance must be evaluated together and in relation to the carrying capacity of the enterprise. In other words, they must be evaluated from the perspective of sustainability.
Business continuity risk is a major concern for companies, particularly as supply chain management is quickly becoming an industry in its own right. Corporations are spending millions of dollars on consulting firms and devoting countless employee hours to manage international supply chains. With billions of dollars in potential savings Wall Street also is closely watching these management efforts. Most originate out of company procurement functions. Savings are gained through lean manufacturing, supply base rationalization, low cost sourcing and global outsourcing. In all these efforts, the issue of risk is the dominant factor.
In this seminar, the composing elements of risk in a business in the context of manufacturing will be reviewed in detail. A business model of points of risk in production of finished goods (procurement, manufacturing and distribution) will be presented and a quantitative model will be detailed. The focus of theory, analytics, software solution, case study and practice would be on analysis, identification, modeling and planning of risk management in procurement.
In this seminar/workshop, we will review a business model in the context of risk management. We would review and address issues pertaining to:
What is your organization’s strategy for risk management?
How is the strategy communicated and executed throughout the company?
How does each division/unit/team contribute to meeting the goals of the strategy?
How are teams/individuals held accountable for success?
What is your organization’s definition of risk?
What are your organization’s top five risks?
What are the estimated probability, time to impact and severity dimensions for the top five risks?
What are the financial consequences to you company?
Which risks are material?
How should the identified risks be prioritized?
How are these risk currently managed?
Is the approach effective/efficient?
What risk management processes are appropriate based upon the findings of the above elements?
What action plans should be in place?
How are risks monitored?
The main efforts and focus of risk dimensions mentioned above will be on risk issues on flow of supply and raw materials and procurement.
This workshop is a fully interactive and hands-on experience and designed as follows:
1.Principal theory and practice of risk management
2.Analysis of a business model of an enterprise and study and determination of points of risk
3.Systematic methodology for risk analysis , a quantitative approach
4. A software solution for use in workshop will be introduced
5. A complete case study: analysis, determination, planning and management of RISK in a business setting
6.Group studies will develop their own approach using risk analysis software
7. A multiple choice review/test will be conducted followed by certification
8.Preview of the Seminar (to be delivered to all attendees ,individual input will be incorporated )following the workshop
Dr. Javad Seyed