1. 1. Risk Management Sarah Kingdom-Evans & Jennifer Whelan | BravoSolution Cheryl Cooper | Childrens Commissioning Consortium Cymru Alison Smale | South East Wales Improvement Collaborative
2. 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. 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. 4. Not a session to provide all the answers.... This afternoon ...but to stimulate thought
5. 5. 6 Awareness
6. 6. Please Watch Please Watch
7. 7. Can you Define Risk? Risk a definition of
8. 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. 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. 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. 11. Paddles at the ready
12. 12. Bird Management spend 20k per annum or 0.01% 13 High Risk (RED) or Low Risk (Green)
13. 13. Paddles at the ready
14. 14. 15 Takeaway Coffee Cups High Risk (RED) or Low Risk (Green)
15. 15. The need to
16. 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. 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. 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. 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. 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. 21. The need to
22. 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. 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. 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. 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. 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. 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. 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. 29. The need to
30. 30. Identify, Mitigate and Manage Risk Supplier profile continues throughout
31. 31. Vendor Performance Management Supplier Relationship Management Supplier Risk Management Supplier Information Management
32. 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. 33. Customer Case Study
34. 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. 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. 36. Needs and Market Analysis Collaborative Frameworks-Foster and Residential Individual Placement Matching Collaborative Performance Evaluation eCM Solution
37. 37. Quality Performance Assessment Collaborative Risk Management 360 Outcomes Tracking Continuous Improvement cycle Collaborative Performance Evaluation
38. 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. 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. 40. Collaborative Risk Management
41. 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. 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. 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. 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
45. 45. Q&A
46. 46. Please Watch Please Watch