In-Company Short Training Courses in Supply Chain Planning.

Course Title: Risk Management in the Supply Chain.

The course is designed to:

Explore the concept of risk focusing on risk in the supply chain. It considers the necessary business process of risk management, the means by which risk can be assessed (subjective and objective approaches) typical sources of supply chain management risk and approaches to mitigating the impact of risk.

Course aims:

To enable the delegate to analyse the nature, scope and likely sources of supply chain risk. Having identified instances of risk the delegate will learn how to put in place risk mitigation and management strategies that minimise the likelihood of occurrence and mitigate impact of a given risk event.

Learning outcomes – At the end of the course students will be expected to be able to:

  • Prepare a suitable definition of risk as it relates to the supply chain function.
  • Develop a risk assessment of their organisation’s supply chain.
  • Produce and operate a risk evaluation model.
  • Design and assess risk mitigation strategies relevant to the supply chain.
  • Design and participate in risk management business processes and structures.

Indicative Content:

Understanding the Nature of Risk in a commercial context:

  • Definitions of risk.
  • A review of a number of case studies to illustrate the variety of sources of risk.

Corporate approaches to managing risk:

  • Risk Management as a functional discipline.
  • Risk in the enterprise vs. the end-to-end supply chain.
  • Risk appetite with the organisation.
  • Risk identification.
  • Evaluating risk.
  • The risk register
  • Risk and personnel.
  • The 4 risk responses.
  • Enterprise Risk Control systems.
  • Corporate Governance and Risk.

Risk management in the procurement cycle:

  • External sources of risk in contract and relationship strategies.
  • Using specifications to minimise risk.
  • Managing and mitigating contractual risk.
  • Managing risk in performance.
  • Managing financial risk.
    • Types of financial risk.
    • Exchange rate risk.
    • Creditworthiness risk.

Managing exchange risks in international procurement and trade:

  • Foreign Exchange and Currency Risk management.
  • The foreign exchange markets and currency price volatility.
  • What are main factors driving currency positions in
  • today’s markets.
  • The nature and scale of the risk in large corporates.
  • The daily volume of trade.
  • Role of the Dollar, Euro, Pound and Renimbi as world currencies.
  • Currency tracking and alignment.
  • Currency is a commodity.
  • Hedging explained.
  • Buyers are not speculators.
  • Fixing the currency risk.
  • Buying forward.

Reputational Risk management in the supply chain:

  • The move from Make to Buy.
  • The use of low cost country sources of supply.
  • Sources of reputational risk.
  • Different cultural norms for labour, environmental control and human rights.
  • Working with low cost country cultures.
  • Labour rights.
  • Child labour.
  • WTO and Ethical Trading initiatives and reputational risk management.

Logistical risk in extended supply chains:

  • Evaluating logistical risk.
  • Supply chain resilience and robustness measurement.
  • Analysing the supply chain as a logistical network.
  • Managing complexity in the supply chain network.
  • Stability of the supply chain constituent parts.
  • The likely nature of the change – Disruptive vs. Incremental.

Further reading:

The course will identify and cover in full detailed learning outcomes required for assessment purposes. However, if you wish to read further in order to supplement your learning and cement your understanding of the course, content, aims, and purposes, we recommend the following book(s):

Managing risk in public organisations – Fone and Young.

Procurement risk: a short guide – Richard Russill.