1. 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

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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. Roundtable and discussion

10. BACK-UP

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

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