Post-Conference Master Class 1 - November 01-02, 2011
PROCUREMENT RISK MANAGMENT (PRM)
The Risk of No Risk Management
Increasingly, top executives view supply markets as sources of competitive advantage and as means of achieving strategic objectives. Procurement is the management activity that makes this happen, and this process depends on superior Risk Management capability to deliver maximum effectiveness. And yet …
… several surveys show that Procurement Risk Management (PRM), despite its importance, is surprisingly under-developed. Further research has discovered that 50% of enterprises lack formal metrics and procedures for assessing and managing supply risks, and this despite the fact that a recent Global Risk Management Survey cites supply chain failure as one of the most pressing risks around the world. At least half of the risks in the survey’s Top Ten risks are directly related to procurement activity and hence fall within the remit of PRM. But less well known is that this is only half of the story … risk exposures also exist inside the company and can be just as damaging.
PRM as a Go-Faster capability
The good news is that it is not all doom and gloom. There is a positive side to risk management. Smart companies know that a good PRM system improves their anticipation of the unexpected and enables them to make finer judgements. As a minimum ‘Running a Risk’ becomes ‘Contingency Planning’ … whilst a superior ability to handle whatever the world throws at you puts you ahead of your competitors.
Risk Management is a subject that is long on words, full of different interpretations, and often short on actual help. But in his characteristic way, Dr Richard Russill takes a fresh and concise look at the subject and offers a lively and structured approach to assessing your company’s PRM state-of-health and then doing something about it. ‘Third party, fire and theft’ may be OK for some companies, but this MasterClass is possibly the only forum presenting the fully comprehensive package. The benefits? … not just insurance but also competitive advantage.
What will be discussed?
Setting the Risk Management Agenda
- what is PRM ?
- a view of the world, and your world. Where are the threats coming from, and why are they coming faster?
- who are your allies in the risk management world?
- the Risk Triangle: how Exposure, Harmful Disruption, and No Mitigation create the “critical mess” … and why removing any one component ensures that prevention is better than chaos
- why traditional procurement is not the answer for best-practice PRM
- introducing the ‘Risk Catcher’
Identifying and Dealing with Risks
- locating the risks in your
- procurement process
- external dependencies
- management controls
- market conditions and behaviours
- ability to handle the unexpected
- self-assessment of your company’s PRM capability
- techniques for effective PRM
Specific Risk Management Scenarios
Your chance to set the discussion agenda, or to choose from examples such as:
- repairing dysfunctional procurement processes
- how to collaborate with suppliers and not lose your shirt in the process
- knowing when you are at the brink of pushing suppliers for a better deal
- applying creativity techniques to identifying supply chain vulnerabilities
- protecting your company’s reputation from supplier malpractice
- how not to leave your company exposed to internal or external fraud
- dealing with hostile or distorted supply markets
- better ways of coping with volatile, upwardly mobile, commodity prices
- what happens when “what if” becomes “how could we know that would happen?”
The Way Ahead
- next steps for implementing PRM in practice
- using PRM as a vehicle for repositioning procurement’s strategic role in business
By the end of the Master Class, you will have;
- a clear, comprehensive understanding of the definition and scope of Procurement Risk Management (PRM)
- a tool for identifying risks in 5 distinct operational areas
- performed a self-assessment of your own company’s risk management coverage and had ample opportunity to table your specific needs, questions and improvement plans
- had sight of at least 70 different procurement-related risks and their potential solutions
- participated in a lively programme of structured analysis and discussion allowing you to benefit from the experience of like-minded participants and the MasterClass facilitator
- a network of practitioners with whom to share ideas and experiences in future
- a copy of Dr Russill’s latest book “A Short Guide to Procurement Risk”
Who Should Attend
The programme is designed for private or public sector senior executives of all persuasions who have authority to influence what happens in their company, be it from a commercial, operational, financial, legal or audit viewpoint. It will particularly appeal to those who are contemplating, or responsible for, making changes which will improve the integrity and sure-footedness of their business operations, using procurement transformation as the catalyst to achieve superior performance.
Certificate
A Certificate of Attendance will be handed to all delegates successfully completing this Master Class.
Facilitator
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Dr. Richard Russill International Speaker, Author & Consultant R C Russill & Company UK |
Dr Richard Russill operates internationally as a presenter, writer and hands-on resource helping companies to improve their business performance, profitability and competitiveness through high-impact sustainable procurement. Widely experienced in company leadership roles and in consulting, he is described as “an unconventional practitioner, wise coach and visionary who transforms business performance and profitability using procurement as the catalyst.”
Dr Russill has published widely and writes feature articles as well as the Executive Coach column for the quarterly business magazine CPO Agenda. His book ‘Purchasing Power’ is acclaimed as “one of the most useful, insightful and thoughtful books that a sourcing professional will encounter.” His latest book, ‘A Short Guide to Procurement Risk’, was published in mid 2010. He created the Centre-Led Action Network organisational concept ('CLAN’) and was honoured to receive the prestigious Swinbank Award from the Chartered Institute of Purchasing & Supply (CIPS) for “his outstanding contribution to the profession and for carrying its message into the business community at large.” In partnership with CIPS, Dr Russill created the popular “Evening With…” interview event in the course of which he has had the pleasure of meeting and working with a number of notable public figures including Charles Handy, Sir Anthony Jolliffe; Sir John Harvey-Jones; Willie Walsh and Rene Carayol.