1. Risk Management Sarah Kingdom-Evans & Jennifer Whelan |
BravoSolution Cheryl Cooper | Childrens Commissioning Consortium
Cymru Alison Smale | South East Wales Improvement
Collaborative
2. Introduction Awareness Definition of Risk The Need to
Identify Paddles at the Ready.... Identify, Mitigate and Manage
CCCC (Alison Smale and Cheryl Cooper) Q&A/Discussion
Agenda
3. 4 Risk Management can be applied to everything we do,
however it is sometimes considered only once the issue is apparent.
Awareness - How can we as procurement professionals identify,
manage and mitigate the risk associated with both our supply chain
and our roles? Are we allowing the tools we may already have at
hand to support and guide us? Identification is the most difficult
element of Risk Management, and we look at how to capture known
Risks and Issues through the use of planning tools, including
Programme Management. We will also discover how Evaluation can
mitigate risks and minimise potential challenges. As part of this
interactive presentation, we will introduce the audience to the
concept of Vendor Performance Management and the ability to
capture, understand and act upon information before a risk is
transformed into a problem. The concepts, techniques and technology
shall be brought together via our real customer case study.
Throughout this session the human element will remain a constant,
as the most important factor to consider... Overview
4. Not a session to provide all the answers.... This afternoon
...but to stimulate thought
5. 6 Awareness
6. Please Watch Please Watch
7. Can you Define Risk? Risk a definition of
8. 9 Risk a definition of... Top 1000 frequently used words
NOUN - A situation involving exposure to danger.. NOUN 1 A
situation involving exposure to danger: flouting the law was too
much of a risk The possibility that something unpleasant or
unwelcome will happen: A person or thing regarded as a threat or
likely source of danger A possibility of harm or damage against
which something is A person or thing regarded as likely to turn out
well or badly in a particular context or respect: The possibility
of financial loss
9. The 5 Basic Steps to Identify and Manage Risk 1. Identify
Risks/Threats 2. Measure, understand and Qualify Impact 3.
Determine the expected consequences of Risk 4. Identify ways to
reduce Risk 5. Prioritise Procedures Risk may be applied to many
areas Information, Employees, Physical Assets, Reputation,
Finances...
10. Identification of Risk The information needs to provide
directional and strategic planning to Global Sourcing, OpCos,
Segments and Category teams. X & Y axis can vary from elements
to the right Spend vs Risk Managed vs Opport. Volume High Spend /
Low Risk Frequency: Quarterly Price based KPI Coverage Strategic
High Risk / High Spend Frequency: High (Monthly) Broad KPI & PC
Coverage Non-Critical Low Risk / Low Spend Frequency: Annually/None
Little to No Measurement Monitor High Risk / Low Spend Frequency:
Quarterly Reliability Based KPIs RISK VALUE
11. Paddles at the ready
12. Bird Management spend 20k per annum or 0.01% 13 High Risk
(RED) or Low Risk (Green)
13. Paddles at the ready
14. 15 Takeaway Coffee Cups High Risk (RED) or Low Risk
(Green)
15. The need to
16. 17 Awareness, Identification, Mitigation and Management
What can inform us....? Sourcing To support the end-to-end
negotiation lifecycle with in-depth RFX and Auctions capabilities
for procurement initiatives of any size and complexity Contract
Management To manage and control contractual obligations across the
supply chain ensuring enterprise-wide visibility and compliance
management. Programme Management To provide project management and
control for full lifecycle of each procurement initiative including
workflow and collaboration support for cross-functional teams Spend
Visibility To systematically and comprehensively monitor
organizational spend in order to better formulate
tactical-strategic procurement decisions Vendor Management To
provide detailed and updated intelligence on suppliers in terms of
characteristics, capabilities and past performance. Includes
advanced workflow support for supplier evaluation and
qualification.
17. 18 Awareness - Spend Sourcing To support the end-to-end
negotiation lifecycle with in-depth RFX and Auctions capabilities
for procurement initiatives of any size and complexity Contract
Management To manage and control contractual obligations across the
supply chain ensuring enterprise-wide visibility and compliance
management. Programme Management To provide project management and
control for full lifecycle of each procurement initiative including
workflow and collaboration support for cross-functional teams Spend
Visibility To systematically and comprehensively monitor
organizational spend in order to better formulate
tactical-strategic procurement decisions Vendor Management To
provide detailed and updated intelligence on suppliers in terms of
characteristics, capabilities and past performance. Includes
advanced workflow support for supplier evaluation and
qualification.
18. Spend Management offers comprehensive insight into spending
to identify sourcing opportunities, manage compliance, mitigate
risk and report savings Capabilities provide for Spend data to be
aggregated, cleansed, and normalized to accurately depict corporate
spending ; Compliance tracking to help ensure negotiated savings
are realized; Enterprise-wide visibility to identify savings
opportunities; Multi-dimensional risk measurement and supplier
diversity tracking and reporting and Robust exception management
Spend Visibility and Procurement Analytics
19. Awareness Vendor Management 20 Sourcing To support the
end-to-end negotiation lifecycle with in-depth RFX and Auctions
capabilities for procurement initiatives of any size and complexity
Contract Management To manage and control contractual obligations
across the supply chain ensuring enterprise-wide visibility and
compliance management. Programme Management To provide project
management and control for full lifecycle of each procurement
initiative including workflow and collaboration support for
cross-functional teams Spend Visibility To systematically and
comprehensively monitor organizational spend in order to better
formulate tactical-strategic procurement decisions Vendor
Management To provide detailed and updated intelligence on
suppliers in terms of characteristics, capabilities and past
performance. Includes advanced workflow support for supplier
evaluation and qualification.
20. Building the supplier profile throughout the journey Vendor
Management Provides a robust approach to appropriate
pre-qualification and approval of suppliers and supplier access to
relevant category specific opportunities. Vendor Management
optimises all aspects of the relationship with current and
potential suppliers, reducing the time and effort invested by
buyers and suppliers through standardised, collaborative and
automated web based procedures.
21. The need to
22. 23 Awareness Programme Management Sourcing To support the
end-to-end negotiation lifecycle with in-depth RFX and Auctions
capabilities for procurement initiatives of any size and complexity
Contract Management To manage and control contractual obligations
across the supply chain ensuring enterprise-wide visibility and
compliance management. Programme Management To provide project
management and control for full lifecycle of each procurement
initiative including workflow and collaboration support for
cross-functional teams Spend Visibility To systematically and
comprehensively monitor organizational spend in order to better
formulate tactical-strategic procurement decisions Vendor
Management To provide detailed and updated intelligence on
suppliers in terms of characteristics, capabilities and past
performance. Includes advanced workflow support for supplier
evaluation and qualification.
23. Programme Management captures sourcing best practices and
ensures consistent, repeatable results Programme Manager Enable
Best-Practice Sourcing Processes by managing and Enforcing workflow
Routings/Approvals, Improving Buyer-Stakeholder Collaboration and
ultimately leading to an Increase % of Spend under coverage
24. 25 Awareness Sourcing and Evaluation Sourcing To support
the end-to-end negotiation lifecycle with in-depth RFX and Auctions
capabilities for procurement initiatives of any size and complexity
Contract Management To manage and control contractual obligations
across the supply chain ensuring enterprise-wide visibility and
compliance management. Programme Management To provide project
management and control for full lifecycle of each procurement
initiative including workflow and collaboration support for
cross-functional teams Spend Visibility To systematically and
comprehensively monitor organizational spend in order to better
formulate tactical-strategic procurement decisions Vendor
Management To provide detailed and updated intelligence on
suppliers in terms of characteristics, capabilities and past
performance. Includes advanced workflow support for supplier
evaluation and qualification.
25. Sourcing Evaluation Capabilities include ability to
collaborate prior to publishing RFx , Multiple question types,
including robust excel-like worksheets, comparison tools, scenario
analysis, integrated auction monitor and integration with other
modules.
26. 27 Awareness, Identification, Mitigation and Management
Sourcing To support the end-to-end negotiation lifecycle with
in-depth RFX and Auctions capabilities for procurement initiatives
of any size and complexity Contract Management To manage and
control contractual obligations across the supply chain ensuring
enterprise-wide visibility and compliance management. Programme
Management To provide project management and control for full
lifecycle of each procurement initiative including workflow and
collaboration support for cross-functional teams Spend Visibility
To systematically and comprehensively monitor organizational spend
in order to better formulate tactical-strategic procurement
decisions Vendor Management To provide detailed and updated
intelligence on suppliers in terms of characteristics, capabilities
and past performance. Includes advanced workflow support for
supplier evaluation and qualification.
27. Contract Management allows buyers to quickly create, and
store contracts with full version history, reporting and approvals
Contract Management Capabilities include contract templates allow
users to start from approved contracts, maintain one active version
and track all changes approvals allow review and comment, single
repository for all contract information and attachments and
proactive Alert, Price, KPI Management
28. Vendor Relationship Management provides a framework for
companies to effectively track and manage vendor performance,
compliance and identify risk, trends and problem areas and monitor
key performance areas Provides for a single repository for all
vendor information and documents regarding Supplier Management.
This includes fully configurable information templates, alerts,
Qualification guides etc Vendor Relationship Management
29. The need to
30. Identify, Mitigate and Manage Risk Supplier profile
continues throughout
32. Risk Strategies Adapted from Peter Kraljic model Insure
Accept Eliminate Reduce Whilst it is not possible to predict all
sources of risk, it is important to mitigate as many risks as
possible to protect your category or organisation
33. Customer Case Study
34. Collaboration of 21 Welsh Local Authorities Regional
Commissioning Unit Collaborative opportunities for sector wide
commissioning and procurement Improved Outcomes Value for money
Quality Services Sufficiency and choice Efficiency Children's
Commissioning Consortium Cymru Case Study
35. Looked after children placement services foster and
residential placements High specification individualised services
high quality services which deliver positive outcomes for children
and young people High risk service area Safeguarding Stability
vulnerable children Meeting complex needs-unmet needs Information
sharing between commissioners and regulatory bodies Regulation and
minimum standards High public profile/interest Corporate parental
responsibility Demand led service-risk of escalating unbudgeted
costs Contractual Market and supply issues Service Issues
36. Needs and Market Analysis Collaborative Frameworks-Foster
and Residential Individual Placement Matching Collaborative
Performance Evaluation eCM Solution
38. Completed annually with all Framework Suppliers Includes :-
Organisational development Documentation and Inspection Outcomes
Quality Used to review Framework tier positions and ongoing
continuous improvement and development Quality Performance
Assessment
39. Collaborative Performance Review Evidence good and poor
performing providers Manage risk Access accurate and reliable
management information. Secure and auditable online communication
portal Set milestones to achieve improved value for money and
quality Collaborative Quality Assurance and Risk Management Across
Authorities/Across Suppliers
40. Collaborative Risk Management
41. Online survey capturing perspective of service user, carer
and social worker Designed with participation of young people with
care experience Over 80% of young people who responded felt their
outcomes were being met by their placement most or all of the time
360 Outcomes Tracking
42. Quality and outcomes have improved Traffic light indicators
40 % increase in green indicators for 2014 Performance improved
from 20 red indicators in performance categories for 2013 to no red
indicators in 2014 Quality and Outcomes
43. Internal Stakeholders Reporting issues/risks Adapting to
consistent regional processes Structures and capacity Non framework
providers Collaborative decision making Suppliers Impact on market
position Fairness and transparency Business continuity and planning
Feedback welcome Improving standards New business models
Issues
44. Price Efficiencies Increase in local placement capacity new
care models and market facilitation Robust collaborative risk
management systems Improved information sharing Reduction of
identified risks and suspension or closure of poor care settings
Preference given to high quality providers via Tier review Improved
relationship and basis for partnership Benefits