You identify and manage risks at the corporate level or within your business unit or functional area. You understand the increasing costs and risks of business disruptions. You understand the need to manage risk to achieve an appropriate balance between realizing opportunities for gains and minimizing losses. You know it’s an iterative process consisting of sequential steps that enable continuous improvement in decision making, which leads to performance improvement.
With today’s 24/7 business delivery model, increasing operational risks, and globalization of business operations, you need to be proficient with contingency planning, crisis management and emergency response. Jonova provides the robust scenario modeling capability essential to effective management of the following risks:
- Business Continuity: understand what can go wrong, what potential harm may be caused, what events could cause such harm, how to stop events from occurring and how to respond if such events occur. Be sure that measures are in place and remain effective on an ongoing basis. Recognize risks that are relevant to business goals and prioritize risks in order of relevance and impact to your business.
- Supply Risk Management: analyze the ramifications of supply and demand disruptions occurring. Maximize the responsiveness and resilience of your supply chains so it can withstand the effects of major disruptions, whether caused by economic conditions, politics, nature or governments. Achieve this without hurting the customer experience or incurring excessive recovery costs. Significantly reduce risk exposure and enrich supply chain strategic planning. Integrate your supply chain risk management capabilities with your S&OP process to ensure constant alignment between plans and strategies and to help minimize the impact of supply chain disruptions on your supply chain’s performance.
- Supplier Risk Management: manage global sourcing deals from a vendor risk management perspective. Regularly assess your ability to switch providers and contract for appropriate levels of transitional assistance/disentanglement services from the service provider in the event of contract termination, including service continuation guarantees during the transition. Determine if using dual sourcing will be a valid risk mitigation strategy for your company. Identify potential sources of risk among your supplier’s suppliers. Develop joint contingency plans with these suppliers. Work with them to identify their scenarios and the effects these could have on their supply chains (in terms of demand levels, variability, location and timing), and “play” these demand scenarios back through your own supply chain scenarios to create a portfolio of strategic risk responses to demand disruptions or sudden or prolonged demand changes.
- Supply Contract Risk: outsourcing might be the most cost-effective option or a great market expansion strategy, but it can introduce additional risk to your supply chains. Quantify the risks associated with sourcing decisions and optimize your plans based on solid data.
- Currency Risk: evaluate exchange rate exposure and understand the impact of currency fluctuations on forecasted profit margin.
Jonova can help determine the cost trade-offs for different risk mitigation strategies, and how each scenario can be put into operation in a timely manner.