Risk Management Outside Your Four Walls: Implementing
Risk Management outside Your FourWalls: Implementing Risk Strategiesfor the Supply-ChainTim Lozier, EtQ, Inc.CONFIDENTIAL: This document contains information that is confidential and proprietary to EtQ, Inc. Disclosure, copying,www.etq.com 1.800.354.4476distributionor use withoutthe express permission of EtQ is prohibited. Copyright 2016 EtQ, Inc. All rights reserved.ISO 27001Certified
Agenda Looking at the challenges surrounding the Supply‐ChainUnderstand the risks associated with Supply‐Chain ComplianceWhat is the Supplier Network and how does it impact operations?Identify the Gaps and Fillers the Supplier Network can controlUnderstanding the Risk Management dynamic in the Supply ChainTools for assessing risk in the Supply‐Chainwww.etq.com 1.800.354.4476
Increasing Rate of Changewww.etq.com 1.800.354.4476
There is an Increasing Rate of Change We are more complex Global Scale of Production, Design, Sourcing More Mergers, Acquisitions Growing Supply‐Chain There is more competition Competition leads to shorter product lifecycles Increases in product complexity More variety of goods in more areas Companies need to maintaincompliance AND keep up with thepace of business!www.etq.com 1.800.354.4476
Challenges in the Supply Chain Outsourcing On the Rise17% of companies have true end‐to‐end visibility into supplieroperationsJust 25% of a typical company’s end‐to‐end supplychain is being assessed in any way for risk.53.5% of companies are planning toinvest in additional IT to improve supplychain visibility by 2018.www.etq.com 1.800.354.4476
Challenges in the Supply Chain Factors driving these trendsTime to MarketReduce CostsTransfer riskFocus on brand owner core competenciesLeverage new technology fasterSpecialized knowledge and skills in SuppliersGreater flexibility in the Supply Chain Challenge: increased outsourcing creates new risks!www.etq.com 1.800.354.4476
Challenges in the Supply Chain: Trends The Internet of Things (IoT) Digitization of Data Shift to Big (but Usable) Data SCM Organizations Will Begin to AdoptApplication Convergence Strategy Risk Management Comes to the Forefront Operations Planning and Inventory OptimizationGo Under the Microscopewww.etq.com 1.800.354.4476
Challenges in the Supply Chain Risks Associated with the Supply ChainDependenceon SuppliersDifferentVisionsLoss ofOperationalControlLoss of IP &CounterfeitingLoss of CriticalSkillswww.etq.com werVisibility inPerformanceand Quality
Challenges in the Supply Chain How can we mitigate Risk?Dependenceon SuppliersDifferentVisionsLoss ofoperationalControlLoss of IP &CounterfeitingLoss of CriticalSkillswww.etq.com werVisibility inperformance/quality
Challenges in the Supply ChainHow can we mitigate Risk?Disaster recovery plan for supplychain interruptions, Contingenciesin the Supply Chain DependenceDifferentVisionson SuppliersDifferencesPromote industry groupsLoss of andoperationalstandards adoption,Invest inControlTrack‐and‐Trace technologies,Integrate business systemsLoss of IP &Risk Managementplan to protectCounterfeitingIPLoss of CriticalWhat skillsshould we retain?SkillsWhat are the core activities?www.etq.com 1.800.354.4476Supplier selection based on morethan specs and cost, Move fromSupplyChain to Supplier lement an automatedSupplierperformanceQuality Network/quality
Challenges in the Supply Chain Top risk mitigating strategiesSource: Aberdeen Groupwww.etq.com 1.800.354.4476
How your QMS Supports the Supply ChainExtendQuality tothe SupplyChainQMSComplianceManagementin the SupplyChainImplementRiskManagementto ImproveCompliancewww.etq.com 1.800.354.4476 Change controlSupplier performanceOut‐of‐specification managementComplaints handlingCAPA programSpecification management Culture?Processes?Quality system?Sub‐contractors? Define acceptable level Real time monitoring
Current Gaps: Supplier OnboardingAuditSupplierwww.etq.com 1.800.354.4476ApprovedSupplierSpecificationManual or Offlineprocess
Filling the Gap: Automating Supplier Approval1.2. 3.Access provided to relevant modulesDashboard assigned to the SupplierAllow the supplier administrator to build their profileFilters applied to the User’s profile to showonly the relevant datawww.etq.com 1.800.354.44764.
Current Gaps: Existing Supplier CollaborationManual or OfflineprocessApprovedSupplierwww.etq.com 1.800.354.4476Specification
Filling the Gap: Automate Specification ApprovalInternal cation& ProfileA copy of specification is createdalong with the information neededfor the supplier to approve the specwww.etq.com 1.800.354.4476Internal SystemsThe Supplier signs off on the Specification.If the Supplier cannot deliver to thespecification, it is sent back and forth tilla version is agreed uponSpecificationApproved
Current Gaps: Annual Supplier AuditsAuditManual or OfflineprocessSelf AssessmentAudit PerformedSCAR Issuedwww.etq.com 1.800.354.4476Supplier
Filling the Gap: Automate the Supplier AuditInternal SystemsAuditSupplierNetworkSolutionAuditA Planned Supplier Audit is scheduled.It is sent to the supplier to provideSelf‐Assessment informationwww.etq.com 1.800.354.4476Internal SystemsSelf AssessmentThe supplier does a self assessmentand sends the results back
Supplier Audit (cont.)Internal SystemsAudit ResultsSupplierNetworkSolutionAudit ResultsThe Results of the Audit are reviewedwith the supplier. The Supplier has anopportunity to provide additional feedbackor agree to Nonconformitieswww.etq.com 1.800.354.4476Internal SystemsCompleted AuditThe Supplier signs off on the agreedAudit results and SCARs/Actions areIssued as necessarySCAR
Current Gaps: Receiving ShipmentsManual or Rwww.etq.com 1.800.354.4476Execute theDisposition
Filling the Gaps: Resolving nal SystemsInternal SystemsNonconformanceA nonconformance with batch/lotinformation is sent to Supplier alongwith the nonconformance informationSCARwww.etq.com 1.800.354.4476Execute theDispositionThe Supplier investigates the issueand recommends a disposition. ThisInformation is then sent to the InternalRep for Review
Current Gaps: Supplier Corrective ActionsSCARSCAR Verified& Completedwww.etq.com 1.800.354.4476SupplierSCAR ImplementedManual or Offlineprocess
Filling the Gap: SCARInternal SystemsSupplierNetworkSolutionInternal SystemsSCARSCARA SCAR is sent to the Supplier.This record is assigned to a Suppliercontact, and is assigned a due datewww.etq.com 1.800.354.4476The Supplier performs Root Causeanalysis, determines corrective action,and due dates and sends it back
SCAR (cont.)Internal SystemsSCARApprovedSupplierNetworkSolutionSCARThe SCAR is approved and sent backto the Supplier. It is assigned to theSupplier contact with respective due datewww.etq.com 1.800.354.4476Internal SystemsSCAR Verified& CompletedThe Supplier Implements the SCAR,provides evidence of completion andsends it back
Filling the Gap: Supplier Deviations/WaiversSupplierNetworkSolutionThe Supplier sends a Waiver requestto deviate from the Approved specification.www.etq.com 1.800.354.4476Internal SystemsSupplierNetworkSolutionThe Deviation is reviewed and approvedInternally and upon receiving internalApprovals, is sent back
Risk Management Process Risk Management is a broad standard (ISO 31000)Risk IdentificationRisk EvaluationDevelopment and evaluation ofrisk assessment methodsRisk management decisionsImplemented solutionwww.etq.com 1.800.354.4476Identify all relevant risks (e.g., hazardanalysis)Quantify the risk (e.g., probability andseverity)Implement a processUse objective and proven toolsAccept (worth it), reduce (mitigate),compensate (insure), transfer (partner),avoid (stop)Change management to introduce orimprove controls
Common Tools for Risk Management Treatment(a sample) Decision Tree Risk Matrix Failure Modes andEffects Analysis (FMEA) Bowtie Risk Registerwww.etq.com 1.800.354.4476
Decision Tree AnalysisEasy to integrate with everyday processeswww.etq.com 1.800.354.4476
Risk MatrixQuick, easy, colorfulwww.etq.com 1.800.354.4476Quantifies the risk level usingtested assumptions
Failure Modes and Effect AnalysisFor design of products and processeswww.etq.com 1.800.354.4476
FMEA Processwww.etq.com 1.800.354.4476
Sample FMEA Formwww.etq.com 1.800.354.4476
Bowtie ModelFor low-occurrence events that are catastrophicwww.etq.com 1.800.354.4476
Bowtie ExampleFor low-occurrence events that are catastrophicwww.etq.com 1.800.354.4476
Risk Register Monitors risk levels over time Library of hazards (typically known for each industry) Collects risk assessment data from many processes Provides visibility into critical events and data for trend reportingPDCA Cyclewww.etq.com 1.800.354.4476
Summary Supply Chain is Becoming More Complex Many risks associated with growing supply chain Mitigating risks is primarily a strategic initiative Supplier Quality Network Cornerstone of Compliance Comprehensive, standardized QMS extends to Supply Chain through the This network Key quality processes encompass supplier operations Risk management is critical to maintaining compliance Apply Risk Management to the supply‐chain Use a objective and repeatable risk management tools Integrate risk assessment into the compliance processes Risk Management is also a Strategic Initiativewww.etq.com 1.800.354.4476
Thank you! Questions?Designed for smallworkgroups in Quality, EHSand Compliance looking totrack events, issue actionitems and launch correctiveactions.Designed especially for SMBcompanies that are lookingfor full functionality in anaffordable SaaS solution.Designed for global, multi‐site deployments, with theneed to integrate complianceacross the enterprise.Free DownloadTake a Free TrialRequest a q.comwww.etq.com 1.800.354.4476
Risk Management Process Risk Management is a broad standard (ISO 31000) Risk Identification Risk Evaluation Development and evaluation of risk assessment methods Risk management decisions Implemented solution Identify all relevant risks (e.
Risk is the effect of uncertainty on objectives (e.g. the objectives of an event). Risk management Risk management is the process of identifying hazards and controlling risks. The risk management process involves four main steps: 1. risk assessment; 2. risk control and risk rating; 3. risk transfer; and 4. risk review. Risk assessment
81. Risk Identification, page 29 82. Risk Indicator*, page 30 83. Risk Management Ω, pages 30 84. Risk Management Alternatives Development, page 30 85. Risk Management Cycle, page 30 86. Risk Management Methodology Ω, page 30 87. Risk Management Plan, page 30 88. Risk Management Strategy, pages 31 89. Risk
Tunnelling Risk Assessment 0. Abstract 1. Introduction and scope 2. Use of risk management 3. Objectives of risk assessment 4. Risk management in early design stages 5. Risk management during tendering and contract negotiation 6. Risk management during construction 7. Typical components of risk management 8. Risk management tools 9. References .
Risk Matrix 15 Risk Assessment Feature 32 Customize the Risk Matrix 34 Chapter 5: Reference 43 General Reference 44 Family Field Descriptions 60 ii Risk Matrix. Chapter 1: Overview1. Overview of the Risk Matrix Module2. Chapter 2: Risk and Risk Assessment3. About Risk and Risk Assessment4. Specify Risk Values to Determine an Overall Risk Rank5
The risk management framework at CLP comprises four key elements: Risk ppetite Risk Management Proess Risk overnane Strtre Risk Management iosopy CLP's Risk Management Philosophy . In assessing the consequence of a risk, CLP considers Financial consequences, in addition to non-financial ones, comprising Safety and Health, Environment .
Standard Bank Group risk management report for the six months ended June 2010 1 Risk management report for the six months ended 30 June 2010 1. Overview 2 2. Risk management framework 3 3. Risk categories 6 4. Reporting frameworks 8 5. Capital management 10 6. Credit risk 17 7. Country risk 36 8. Liquidity risk 38 9. Market risk 42 10 .
The central part of a risk management plan is a document that details the risks and processes for addressing them. 1. Identify and assess the Risks 2. Determine Risk Response Strategy Avoid the risk Transfer the risk Mitigate the risk Accept the risk 3. Execute a risk management plan 4. Monitor the risks and enhance risk management plan
ACCOUNTING 0452/11 Paper 1 May/June 2018 1 hour 45 minutes Candidates answer on the Question Paper. No Additional Materials are required. READ THESE INSTRUCTIONS FIRST Write your Centre number, candidate number and name on all the work you hand in. Write in dark blue or black pen. You may use an HB pencil for any diagrams or graphs. Do not use staples, paper clips, glue or correction fluid. DO .
