Question

I have asked this question 4 times and no one has done it right yet!!!!! PLEASE HELP ME

I need a Risk Management Plan for a made up supply chain company. This should be several pages including:

1   INTRODUCTION.. 1

1.1         Purpose Of The Risk Management Plan. 1

2   risk management Procedure.. 1

2.1         Process. 1

2.2         Risk Identification. 1

2.3         Risk Analysis. 1

2.3.1    Qualitative Risk Analysis. 1

2.3.2    Quantitative Risk Analysis. 1

2.4         Risk Response Planning. 1

2.5         Risk Monitoring, Controlling, And Reporting. 2

3   Roles and responsibilities. 2

4   Budgeting.. 2

5   Timing.. 2

6   Risk Breakdown structure/ categories. 2

7   stakeholder risk tolerancese.. 3

risk management plan approval.. 4

APPENDIX A: REFERENCES. 5

APPENDIX B: KEY TERMS. 6

Answer 1

1. Purpose of the risk management plan.

Global supply chains today are subject to more risk factors than localized supply chains of the past. These risks include supply disruption, supply delays, demand fluctuations, price fluctuations, and exchange-rate fluctuations. As was evident in the financial crisis of 2008, underestimating risks in global supply chains, and not having suitable mitigation strategies in place can result in painful outcomes. There are so many examples from past history which depict the need for Risk management plans to be incorporated in the supply chain. So the main purpose of this is to develop several mitigation strategies combined with different departments of the supply chain to ensure a smooth flow of operation and logistics. This will define how a flexible is a system to risk prevailing in the system which can show up at any moment.

Given the complexity & uncertainty inherent in the global environment, managing risk is an issue that must be addressed by any firm doing business globally. Supply Chain Risk Management (SCRM) forms the link between your organizations, customers, and supplier’s business environment: it reduces dependency and promotes synergy. Existing supply chain management theories are enhanced by means of a greater focus on the unpredictable factors: the uncertainties. SCRM represents a new broom sweeping through your supply chain. As a result of trends and developments within your supply chain, your organization is continually faced with new or changing uncertainties. These must be addressed as quickly and as efficiently as possible.

Risk Management procedure:

1. Process:

a. Identify the type of risk. As stated below, these are the main areas where an SCM can have failures. This should be entered into the Risk register and tracked rigorously until it is mitigated. Drill down to the areas from where we need to receive information regarding the risk occurrence.

b. Frame a supply chain risk management network.

• Impact on the organization if the risk materializes.
• the likelihood of the risk materializing.
• Organization preparedness to deal with the risk.

c. Monitor Risk:

Persistent risk monitoring is the key to reduce the risk. Successful monitoring systems are customized to an organization’s needs, incorporating impact, likelihood, and preparedness perspectives.

d. The final step is to regularly review and govern the strategies taken to reduce the risk, improving the resilience and agility of the supply chain. An effective method is a cross-functional risk board with members representing every node of the supply chain.

2.2 Risk Identification:

Risk can be identified, when there is a lack of transparency, acknowledgments, and communication hinders. Also, below are the categories of risk that can be identified in the system.

Below are the probable risk usually identified in the SCM, then manage to get the details of the risk involved.

Risk Analysis:

Quantitative Risk Analysis uses available relevant and verifiable data to produce a numerical value which is then used to predict the probability of a risk event outcome.

Qualitative Risk Analysis, on the other hand, applies a subjective assessment of risk occurrence likelihood against the potential severity of the risk outcomes to determine the overall severity of a risk.