Risk management and the supply chain (Proposal Report) IntroductionSupply chain plays the most important role in managing a business as it is not the same as it was 10 years .As trade has globalized over the past decade thus the risk factor has significantly increased as well. Even a relatively small supply chain disruption by a localized event may have consequences across the global economic system. There is no control over causes to events in supply chain but only control we have is over the consequences of events. In supply chain management one should always monitor risk and react rapidly in order to minimize the effect.
Problems (Industry Challenges) • Brand Integrity• Cost Allocation• Working Capital• Globalization• Foreign sourcing /outsourcing• Employment Practices• Quality Assurance• Supply chain disruption• Logistics and transportation issues• Innovation• Training• Attracting and retaining employees FeasibilityA Risk Management Feasibility Study is the ideal starting point for a company about to introduce company-wide risk management.• Economic Feasibility Cost-benefit analysis• Technical Feasibility Ability to construct system Cost/time overruns Inadequate system performance levels Scope DevelopmentThe scope development criteria will help us to gain more information about the target audience.• Charter clarity• Cost-benefit analysis• Alternative approach evaluation• Performance measurement system Topics to Investigate• Planning and Scheduling• Time estimating and control• Quality and assurance control• Manpower management and control• Resources and procurement • Communication and decision makingMethods and Procedures• Risk identificationWhat might go wrong?• Assessment and analysisAssessment of probability and impact?• Mitigation /Fall back PlanningWhat can we do about it?What might we have to do?• On-Going risk managementHow do we stay on track? ConclusionIn order to achieve organizational growth and customer satisfaction, risk management plays an important role. Because an effective risk management plan can detect disruption and its impact on supply chain performance which then can be communicated via a communication path so that the causes can be identified and immediate action can be taken on . ReferencesMaheshwari, S & Jain, P. (2014). Supply Chain Management – Review on Risk Management From Supplier’S Perspective.
44. 557-566. 10.2507/daaam.scibook.2014.44.https://www.riskexperts.at/2/geschaeftsfelder/enterprise-risk-management/risikomanagement-feasibility-study/