In this class we want think about all the potential operational, business, economic, supply chain and

environmental risks that organizations operations face in today$$s environment of generally rising risks

from multiple sources.

What is Operating Risk

These risks pose threats to today$$s operations, and means we now have to think a lot more about

operating risk and what to do about it$.$

Operating risk in this course means, $$All potential losses emanating from suppliers, internal processes

and systems, customers and external events.$$ A risk is often classified in terms of both severity and

likelihood of happening. At risk are these interrelated aspects of an organization$$s value, and even the

survival of the organization itself. The CV$19$ outbreak was a low probability $($was it$?)$ but high impact

event... This kind of risk is very difficult to predict and prepare for, and the impacts have been severe.

This implies all organizations need to be more aware of the risks, and to have some form of Risk

Management activity in place.

Risk Management generically involves three sets of activities:

$1.$ Preventing losses before they happen. That is why we try to identify and evaluate potential risks

before bad things happen.

$2.$ Mitigate losses as they are happening. While bad things are happening, we try to reduce the

damage as much as we can. The notion is that early intervention reduces losses and make

recovery faster and easier.

$3.$ Recover from the losses. This also involves mitigating the damage but also involves restoring

processes, systems and relationships back to normal functioning and operation.

To these traditional elements I would add a fourth, that of learning from the experience.

There are many sources of operating risk both internal and external to an organization. In this course we

have dealt with the risks directly impacting an organization and the role of processes in controlling and

managing those risks $($such as capacity management, quality management, JIT, forecasting, inventory

management, and management of IT$).$ Increasingly for many organizations, major risks lie in the supply

chain and the external environment. CV$19$ is an excellent example of an external risk that was always

$$out there$$ that most organizations largely ignored.... until they couldn$$t$.$

Your Assignment:

Discuss with your group and identify $4$ major risks that are present in the operations of any business or

organization. You can use the slide $$Categories and Drivers of Risks in Supply Chains$$ in the presentation

as a guide, but you are not restricted to that.

For each major risk identify the following;

$1.$ The name and nature of the risk

$2.$ The probability of it occurring

$2$

$3.$ The types and costs of damage that an organization will suffer if it does occur

$4.$ Then assess what could be done within the organization itself to prevent the risk event from

occurring. $($and it might be very little, depending on the risk you chose$)$

$5.$ Determine what impact the risk event would have on operations.

$6.$ If the risk event does occur, then determine how the impact of the event can be identified,

assessed and mitigated within the operation.

$7.$ While understanding you won$$t have costs and cannot calculate impacts, at the end of the day

state whether you believe that organizations can do and$/$or will do$,$ what is required to avoid,

mitigate and manage the four risks you have identified? Briefly justify why you think why or why

not.

It is meant to be a $2-4$ hr exercise. A $23-$page response is all that is required.

Please upload your group response to CANVAS by the end of the last day of the course.