Managing Supply Chain Risk [L5M2]©


Module Purpose  
On completion of this module, learners will be able to appraise a variety of tools and techniques to establish the level of risk in supply chains and to recommend and apply ways of avoiding, mitigating or managing risk.

Module Aim
Risk management is a central part of an organisation’s strategy. It is a process whereby the organisation will identify, record and then address the risks associated with their activities with the aim of driving out or controlling those risks to the overall benefit of organisational efficiency and effectiveness. The supply chain is by its very nature a complex activity which is therefore susceptible to risk and its associated impacts. This module is designed to enable learners to examine the nature of supply chain risk and to evaluate mitigation techniques which are available to them as they deal with the associated challenges. They will undertake risk analysis and consider the advantages of a risk register as they apply a range of appropriate risk management tools and techniques to the supply chain.


Certified Inventory Optimization Professional
CIOP is a global supply chain management and inventory management certification program exclusively developed for corporations to optimize the inventory in their supply chain. CIOP teaches the global best practices in 30 modules over 90 hours of live, faculty-led, online training. It is founded on Inventory Management Body of Knowledge (IMBoK) version 3.0. CIOP is a comprehensive program includes training, reference material, Learning Management and Assessment System (LMAS), examination and certificate.

The LMAS contains classroom presentations, classroom notes, video lessons, audio lessons, quizzes, reference materials, terminologies and articles recommended by faculty.

The CIOP Examination is 3 hours, online, proctored examination with 180 multiple-choice questions. The participant needs to secure 70% of the maximum score (360 marks) to pass in the examination.

You can learn more about the CIOP certification in the below links:
CIOP Website: https://pages.fhyzics.net/ciop 
Faculty Profile: https://pages.fhyzics.net/principal-consultant

Click here to request quote for the CIOP certification program.

CIOP Border

Fhyzics Business Consultants is an Approved Study Centre of Chartered Institute of Procurement and Supply (CIPS), UK and offering all the modules under Level-2, Level-3, Level-4, Level-5, and Level-6. During this current COVID-19 pandemic, the classes are offered in distance and self-study modes. For more questions related to our CIPS programs, please speak to our Manager-Certifications at +91-900-304-9000 or email at certifications@fhyzics.net.

Online, Instructor-Led Training Program on Managing Supply Chain Risk [L5M2] Module of Advanced Diploma in Procurement and Supply, CIPS, UK

CIPS Online Courses

Mode of Delivery: Online
Mode of Teaching: Using the Presentation Deck from CIPS, UK
Duration: 3 Hours
Faculty: Venkadesh Narayanan, CIPS Recognized Instructor
Reference Material: L5M2 Study Guide
Level-5: Advance Diploma in Procurement and Supply


ebook-CIPS  Online Books

Managing Supply Chain Risk - LEARNING OUTCOMES

1.0 Understand the nature of risk affecting supply chains
1.1 Define the different types of risk that can impact on supply chains
• Definition of risks, hazards, exposure and risk appetite
• Positive and negative consequences of risk
• Direct and indirect losses
• Internal and external sources of risk
• Categories of risk: financial, strategic, operational and hazard
• Risks from the wider environment: STEEPLED - social, technological (failure including cyber risks and crime), economic, environmental, political, legislative, ethical (labour standards and sourcing aspects) and demographic
• The nature of fraud in organisations and supply chains, why fraud takes place and different types of fraud
1.2 Assess operational risks in supply chains
• Contract failure
• Financial risks such as currency, supplier cash flow and insolvency
• Quality failure
• Security of supply
• Technology
• Logistics complexity
• Risks in outsourcing and offshoring
1.3 Compare methods for eliminating bribery, corruption and fraud in supply chains
• Define bribery, corruption and fraud in organisations and supply chains
• The different types of corruption
• The different types of fraud
• Legislation affecting bribery and corruption
• The use of ethical codes including the CIPS Ethical Code
• Corporate governance including corporate accountability to stakeholders
• The Sarbanes-Oxley regulations
1.4 Contrast risks in supply chains that can impact on organisational corporate social responsibility and sustainability standards
• Defining corporate social responsibility and sustainability
• Assessing corporate risks and risks associated with brand
• Standards for sustainable procurement, such as; United Nations (UN), International Labour Organization (ILO), and the Ethical Trading Initiative (ETI) standards
• ISO20400 – Sustainable Procurement Standard

2.0 Understand processes in managing risk in supply chains
2.1 Examine the use of contractual remedies for managing risks in supply chains
• Indemnities and liabilities
• Ownership of IPR (Intellectual Property Rights)
• The use of force majeure clauses
• Clauses for testing, inspection and acceptance
• Global sourcing considerations and ensuring compliance to standards
• Model Form Contracts such as NEC (New Engineering Contract) and FIDIC (The International Federation of Consulting Engineers) provisions for the use of risk registers, notices and compensation events
2.2 Analyse the use of outsourced third parties in risk management in supply chains
• The use of outsourced third party providers for credit rating and other business services
• The use of outsourced third party providers for auditing risks in supply chains
• The use of outsourced third party providers for disaster recovery services
2.3 Assess the use of insurances for protection against risks in supply chains
• The use of insurance in hedging against risks
• The categories of insurance: employers and public liability, professional indemnity, product liability and trade credit
• Legal principles of insurance
• Underwriting and claims
2.4 Examine the use of contingency plans to overcome risks in supply chains
• The implications of a contingency plan
• The components of a business continuity plan and disaster recovery plan

3.0 Understand risk mitigation strategies in supply chains
3.1 Identify the use of probability and impact assessments to manage risks in supply chains
• Methodologies for assessing the probability and impact of risk
• Vulnerability assessments
• Collating statistical evidence of risks
• The use of probability theory
• Assessing the probability of events using the normal distribution
• The binomial and poisson distributions
3.2 Analyse a risk assessment and a risk register to mitigate risks in a supply chain
• The use of templates for risk assessments and risk registers
• Completing risk assessments and risk registers
• Engaging stakeholders in the development of risk assessment and registers
3.3 Explain the development of a risk management culture and strategy to improve supply chains
• International standards for risk management such as ISO 31000 and ISO 28000
• The risk management process
• External reporting of risks in corporate accounts
• Resources required to achieve improved risk management in supply chains
3.4 Compare strategic approaches to mitigate risks in supply chains
• Developing risk management strategies to mitigate risks
• Preparing a contingency plan
• Preparing a business continuity plan and disaster recovery plan

Keywords: eprocurements, e procurement, procurement, purchase, purchase order, purchase order format, e procurement tenders, purchase meaning in hindi, e procurement tata steel, purchase meaning, ntpc eprocurement, defence eprocurement, e procurement tatasteel, central e procurement, po system, govtprocurement, iocl e procurement, cg e procurement, bpcl eprocurement, purchase requisition, procure to pay, ntpc e procurement, online tendering, procurement process, hire purchase meaning, purchasing management, procurement is, strategic sourcing, procurement management, eprocurement ntpc, eprocurement central, procure, purchase order sample, procure to pay process, mes e procurement, po format, e procurement system, procurement logistics, cpp eprocurement, sourcing ariba, impulse buying, procure to pay cycle, reverse tendering, purchase account, purchase procedure, hpcl eprocurement, e tenders central, purchase order template, purchase invoice, purchase order meaning, purchase meaning in tamil, ongc e procurement, purchase order format in word, purchasing executive, po sap, procurement prices, purchasing processes, public procurement, procurement cycle, purchasing cycle, sale purchase, material purchase, govt e procurement, purchase order process, sourcing and procurement, purchase meaning in bengali, purchase order table in sap, to create purchase order press, purchase requisition in sap, sbi procurement, government e procurement , purchase of stock in trade, bhel eprocurement, tata e procurement, procurement in business, hal e procurement, sale and purchase, sap purchase requisition table, government eprocurement system, purchase method, bel e procurement, eprocurement iocl, procurement softwares, procurement strategy, source to pay, types of procurement, blanket purchase order, outright purchase, purchase requisition meaning, sap purchase order, material procurement, impulsive buyer meaning, local purchase, purchase office, cpp e procurement, railway e procurement, procurement specialists, procurement portals, government procurement, purchase price, indirect procurement, blanket po, impulse purchase, it procurement, procurement planning, purchase order format doc, mes procurement, government e tenders, purchase order template excel, higher purchase, ariba procurement, purchase order template doc, purchase order example, purchase order procedure, procurement executive, sap procurement, purchase day book, procurement cost, purchase cost, procurement consulting, hire purchase finance, central public procurement, bhel e procurement, p2p cycle in sap mm, e procurement tata, procurement service, procurement and supply chain management, procurement procedure, project procurement management, bulk purchase, stock purchase, forward buying, centralized purchasing, oracle procurement, purchasing system, procurement and purchasing, hire purchase example, indian oil eprocurement, bhel tenders e procurement, e procurement nic, purchase request, point of sale display, procurement system, purchase price variance, po order, purchase order software, direct procurement, purchase to pay process, procurement contract, strategic sourcing process, strategic purchasing, supply chain procurement, procurement life cycle, purchase from, e tendering system, purchase on account, outright purchase meaning, credit purchase meaning, procure to pay process in sap, p2p process in accenture, purchase management ppt, procurement in supply chain management, tata steel procurement, procurement in tamil, raw material procurement, central government e procurement, midhani e procurement, hsl e procurement, defense eprocurement, purchase to pay, purchase contract, purchase discount, world bank procurement, coupa procurement, impulse shopping, asset purchase, direct purchase, types of sourcing, indirect purchasing, food procurement, procurement operations, source to pay process, create purchase order, centralised purchasing, direct and indirect procurement, procurement of funds, cpp procurement, ecil eprocurement, sap procurement process, procurement cycle in sap mm, procurement in hrm, oracle p2p cycle, vms procurement, eprocurement of mes, tata steel e procurement b2b, purchase audit, global procurement, purchase meaning in urdu, purchasing and supply chain management, project procurement, digital procurement, procurement company, procurement management system, procurement process cycle, purchase order management, e procurement process, p2p procurement, procurement sourcing, procure to pay cycle in sap with tcodes, vendor management in procurement, abc procurement bhel, spend analysis procurement, p2p accounts payable, tata procurement, eprocurement bel, dps eprocurement, purchase order number, to purchase, purchase order system, po template, po purchase order.

procurement certification, procurement training, cips certification, purchase certification,cips courses, procurement courses, cips training, purchase training, certified procurement professional,certified purchasing professional, procurement courses online, cips certificate, cips level 2,procurement training for beginners, procurement training 2019, procurement management courses, purchasing and supply management courses, public procurement training courses, procurement and contract management online courses, procurement learning, procurement training courses, procurement and logistics courses, purchasing and supply courses, procurement and supply chain management courses, procurement certification online, certified procurement manager, chartered institute of purchasing and supply courses, cpp certification purchasingcips certification cost, procurement courses online free, best procurement certification, public procurement courses, certified international procurement professional, public procurement certification, procurement certification training, procurement management training,cips courses online, purchasing manager certification, purchasing management courses,purchase course, procurement professional courses, cpm certified purchasing manager, certificate in procurement and supply operations, procurement negotiation training, top procurement certifications, procurement classes, cppm certification purchasing, certified public procurement officer, cips training courses


Written by Venkadesh Narayanan

Venkadesh is a Mechanical Engineer and an MBA with 30 years of experience in the domains of supply chain management, business analysis, new product development, business plan and standard operating procedures. He is currently working as Principal Consultant at Fhyzics Business Consultants. He is also serving as President, PDMA-India (an Indian affiliate of PDMA, USA) and Recognised Instructor of APICS, USA and CIPS, UK. He is a former member of Indian Civil Services (IRAS). Fhyzics offers consulting, certification, and executive development programs in the domains of supply chain management, business analysis and new product development.

Leave a Reply

    IMBoK - 2
    IISCM Channel
    IISCM Digest (1)
    LN Group

    Search form


      See all

      Related Post

      Growth Is Just One Click Away

      Don't feel like calling? Just share some details about your SOP Requirements & Fhyzics representative will get in touch with you. Schedule A Meeting with our Manager [Consulting & Certifications]