Better defining the scope of SCRLC Patrick Scholler © 2006 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice

Objectives  Define the scope of SCRLC  Understand each other tops concerns

Agenda / process Intent of the exercise Your company main risk focus? Mapping the risks Defining type of impacts Understand predictability Common denominator ? Define the scope - discussion This workshop should reach two objectives: 1- better understand of the scope of SCRLC 2- better understand each other risk concerns To better define the scope of SCRLC I propose to look at 5 dimensions: The nature of the risk Its severity Its likelihood The nature of its impact Its predictability We’ll try to maintain a ranking all along the exercise Hopefully we’ll some level of convergence among the participating companies

Top five SC risks your company focuses on? Use post-it note, one each, rank them 1-5 Map the risks on the 2x2 per your company perception Severity Need post-it notes – 5 different colors would be nice #1 risk one color, #2 another,… Need a big board able to receive the post-it notes Need another board to group risks by “nature of the risk” Every participant would need to write 1 risk per post-it note for his 5 dominant risks and he/she would that 4 times to be able to feed the 4 High Low Probability Low High 18 January 2019

Map risks per type General availability (cost, Quality) of LABOR Regulatory concerns Reliability of suppliers (quality, warranty, yield,…) Commodity shortage/price fluctuations Fluctuations of foreign exchange rates Intellectual property theft Obsolescence of product inventory or technology War, terrorism, other geopolitical concerns Problems with supply chain infrastructure Plant breakdown, mechanical failures Natural disasters Others 18 January 2019

Define the main impact for each risk Typically Revenue Profit Cash to cash Brand image Other Profit Revenue Need another board Cash to cash 18 January 2019

How predictable is your risk? Nature of the risk? Location? Impact? Time window? Need another board Totally unpredictable Somewhat predictable Quite predictable 18 January 2019

Process Any common denominators?  Any clusters of interests? Severity Probability #1 General availability (cost, Quality) of LABOR Regulatory concerns Reliability of suppliers (quality, warranty, yield,…) Commodity shortage/price fluctuations Fluctuations of foreign exchange rates Intellectual property theft Obsolescence of product inventory or technology War, terrorism, other geopolitical concerns Problems with supply chain infrastructure Plant breakdown, mechanical failures Natural disasters Others Any common denominators?  Any clusters of interests? #2 #3 #4 #5 18 January 2019

Roundtable and discussion

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Supply Chain Risk survey (Source: McKinsey) 18 January 2019

Risk mitigation (source: Swiss Federal Institute of Technology) 18 January 2019