Deploying Risk Management - The APICS Chicago Chapter

123 Pages·2013·4.78 MB·English

by  Richard Gendon

Supply Chain Management
Deploying Risk Management
Basic Steps Toward
Integrating Supply Chain
Risk Management Practices
Richard Gendon
APICS-Chicago Webinar
June 25, 2013
Today’s Webinar
The Groundwork

Defining Risk

Why iSCRM

Beyond Catastrophe

Inherent Risk

The Difference Between ERM & SCRM & why SCRM with ERM

What Others are Doing

The A Ha Moment

Major - um processes & functions

Heat map

What are the tools

Primary Tools

SC Resilience

 There will be disruptions
 X-functions & fast flexible equipment
Risk Database – risk register

Specific RM Tools

Center for Professional Management
Today
(continued)
What are the tools )
 (continued
Risk Frameworks

Specific RM Tools

Risk ID, Tracking and Mitigation

Probability

Steps

Define Risk Appetite

Measurement

TTT

Roll-out & Embed

It is Risk Management

Discrete risks can, and often should be reduced

Important to understand that in aggregate, risk is necessary

Risk Management is a financial tool

Compare to other financial mgt functions

It’s about profit and profitability

Need for integration

Recommendations, Conclusion & Summary

Center for Professional Management
Definition & Context
Center for Professional Management
Definition of Terms
Risk Management is…

Having the ability to handle
uncertainties in a way that
allows us to make rational
decisions regarding them.
• Uncertainty not quantified
• Risk quantifiable
Center for Professional Management
The Challenge
Identify meaningful Uncertainties
and convert them onto Risk using
Probability tools
Uncertainty
Risk
Center for Professional Management
Definition of Terms
Risk Management is…

R
M
Center for Professional Management
In the Context of Business
Risk Management should be…
At the least,
RM
Center for Professional Management
In the Context of Business
Risk Management should be --
In general,
M
R
Center for Professional Management
In the Context of Business
Ideally, Risk Management should be --
M
R
Integrated Risk Management
the integrated management of risk
Center for Professional Management