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Supply Chain Management Handbook. Risk Management Awareness Presentation. Contents. Risk Management Concepts & Philosophies What is risk? (ISO 31000) Where do risks appear in the business phases? What is risk management? Why do you want risk management?

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Risk Management Awareness Presentation


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    1. Supply Chain Management Handbook Risk ManagementAwareness Presentation

    2. Contents Risk Management Concepts & Philosophies • What is risk? (ISO 31000) • Where do risks appear in the business phases? • What is risk management? • Why do you want risk management? • What does a risk management program do?

    3. Contents Processes • What are the Elements of a risk management program? • How do the elements relate to a Management System Risk Management Tools (9134)? Examples • Examples of types of risks • Example of specific risks in that risk type Organizational Risk Maturity Model Risk managemnt and the 9100 Quality standard

    4. Risk Management Concepts & Philosophies What is Risk? ISO 31000: An undesirable situation or circumstance that has both a likelihood of occurring and a potentially negative consequence

    5. Risk Management Concepts & Philosophies Where are we confronted with risks during the business phases?

    6. Risk Management Concepts & Philosophies What is risk management? An iterative process to identify, assess, reduce, accept, and control risksin a systematic, proactive, comprehensive and cost effective manner, taking into account the business, costs, technical, quality and schedule programmatic constraints.

    7. Risk Management Concepts & Philosophies Why do you want risk management? To reduce the chances of something harmful happening to the business. This involves a focus on the risks to meeting customer requirements, and preventing product non conformance escapes. The absence of a Risk Management program can result in known, unknown, and unknowable /unforeseen problems for the Customer and Stakeholders concerning the cost, schedule, and technical performance of programs and concerning the quality and on-delivery performance of products and services.

    8. Risk Management Concepts & Philosophies What does a “Risk Management Program” do? Describes the organization's attitude and approach towards risks, how it conducts risk management, the risks it is prepared to accept and how it plans on dealing with those it chooses not to accept and defines the main requirements for a risk management plan.

    9. Risk Management Concepts & Philosophies What does a “Risk Management Program” do? A Risk Management Program: Helps Organization (company structure): • to identify risks • to reduce occurances and impacts of risks • to understand significance/severity of risks • to promote organizational behaviors forcused on risk management • to increase effectiveness of product and service delivery to customer

    10. Risk Management Concepts & Philosophies What does a “Risk Management Program” do? A Risk Management Program: • Creates a process for who, what, when, where, how and how much. • Helps us to maintain information on historic issues. • Helps capitalize on historic issues to prevent future issues. • Helps organization bring out hidden risk knowledge, so it can be managed.

    11. Processes What are the elements of a “Risk Management Program”?

    12. Processes Risk Management Tools (examples 9134)

    13. Processes Risk Management Tools (examples 9134)

    14. Processes Risk Management Tools (examples 9134)

    15. Risk Management Concepts & Philosophies Examples of types of risks; • Financial • Strategic • Compliance / Effectiveness • Operational / Planning including physical & environmental • Human Factors • Political (import export controls) • Environment Health & Safety • Ethical, legal, image

    16. Processes Example of specific risks in that risk type Adapted from : James Reason, Managing the Risks of Organizational Accidents, 1997, p. 12

    17. Organizational Risk Maturity Model

    18. Organizational Risk Maturity Model

    19. Organizational Risk Maturity Model

    20. Risk Management and the 9100 Quality Standard 0.1 General 3.1 Definition of Risk 3.2 Special Requirements 3.3 Critical Items 3.4 & (7.2.1, 7.2.2, 7.3.3) Key characteristics 7.1.1 Risk Management while doing Project Management 7.1.2 Risk Management 7.2.2 Product Risks 7.4.1 Supply Chain Risk 8.5.3 Preventive actions Note:When viewing the wording of the 9100: 2009 standard, be aware of wording such as 'as appropriate', 'complexity' and other wording that provides the organization for options. Applying the concepts of Risk may have an influence as to the options that an organization implements.