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Traditional methods for managing Supply Chain Risk have ceased to be effective with the advent of low probability, high impact events, such as mega disasters, viral epidemics, or major outages. The risk is hard to quantify using traditional methods because of limited or non-existent historical data. This has resulted to companies having calamitous consequences and operational scrambling and failing.

To address this predicament, a Supply Risk Model was developed that focuses on the impact of potential failures at points along the Supply Chain rather than the cause of disruptions. Using this model allows companies to quantify what the financial and operational impact would be if a critical supplier's facility were out of commission.

This presentation provides companies across industries to have a thorough understanding of the Supply Risk Model and the tactical advantage of using the appropriate Risk Management Strategies for a specific supplier. A company's supplier may be of 3 classification, each requiring the appropriate Risk Management Strategies.

1. Low Risk
2. High Risk
3. Hidden Risk

The Supply Risk Model is an effective approach in quantifying Supply Chain exposures and identifying strategies to mitigate impact. Effective and efficient use of the Supply Risks Model and Risk Management Strategies will enable companies to avoid guessing the likelihood of infrequent, high impact events, and instead, focus on evaluating the organization's vulnerability to disruptions.

This deck also includes slide templates for you to use in your own business presentations.

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Source: Supply Chain Management (SCM): Risk Management Strategies PowerPoint document

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