Supply Chain - Risk management
A risk management programme allows project risks to be identified, categorised and controlled. It should therefore be an integral part of any large scale supply chain project.
The first step is for the project team to identify potential risks. Each risk must be scored according to two measures: the likelihood of occurring and the impact if it does occur. For each risk that is either high likelihood or high impact (or both) an appropriate mitigation (to reduce the risk) or contingency (alternative course of action) should be identified. An owner should be assigned to ensure that the mitigation or contingency is put in place.
The risk management plan must be reviewed regularly throughout the course of the project.
Total Logistics has facilitated risk management exercises for many clients including adidas, Farnell and HK Ruokatalo. For further information contact Margaret Schofield.
Total Logistics provides practical strategic supply chain consultancy across all industry sectors throughout Europe and the rest of the world. For more information contact us on +44 (0)118 977 3027, or send an e-mail to info@total-logistics.eu.com.
This Supply Chain glossary article was last updated on 28th November 2007
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