Reinforcement Activity: Advising Executives on Supply Chain Risks

Objective:

$$ Identify potential risks within a supply chain.

$$ Develop strategies for assessing and mitigating those risks.

$$ Strengthen decision$-$making skills by applying risk management principles to real$-$world

scenarios.

$$ Collaborate and communicate effectively in group or individual settings.

Instructions:

In this activity, you will assume the role of a manager tasked with advising company executives

on identifying and assessing supply chain risks. You will develop a professional report $($and

optionally a presentation$)$ that outlines the risks, assesses their impact, and recommends

strategies for mitigating them.

Read the Scenario

o Imagine your company operates a global supply chain, sourcing materials from

various regions and delivering products to customers worldwide.

o Consider potential risks such as delays, supplier reliability issues, geopolitical

disruptions, or technological failures.

o If working in a group, divide the tasks as needed $($e$.$g$.,$ one member researches

risks, another creates visuals, etc.$).$

o If working alone, complete all steps individually.

Research Background Information

Read or discuss these topics to prepare:

o Common supply chain risks $($e$.$g$.,$ supplier reliability, transportation disruptions,

geopolitical risks$).$

o Tools for risk assessment $($e$.$g$.,$ risk matrices, SWOT analysis$).$

o Mitigation strategies $($e$.$g$.,$ diversifying suppliers, using technology for

monitoring$).$

$1.$ Supply chains can face risks such as:

$$ Supplier reliability issues $($e$.$g$.,$ late deliveries, quality problems$).$

$$ Transportation disruptions $($e$.$g$.,$ weather delays, port congestion$).$

$$ Geopolitical challenges $($e$.$g$.,$ tariffs, trade restrictions$).$

$$ Technological failures $($e$.$g$.,$ system outages, cybersecurity breaches$).$

Think about how these risks could affect your organization$$s ability to operate

effectively.

$2.$ Identify Risks $(5-7$ minutes$)$:

o Task: List three potential risks that could impact the supply chain.

o How to do it:

$$ Focus on risks that are realistic for a global supply chain.

$$ Categorize each risk as operational, financial, or environmental.

$$ Example:

$$ Risk: Delays at ports due to labor strikes.

$$ Category: Operational.

$3.$ Assess Risks $(5-7$ minutes$)$:

o Task: Evaluate and prioritize the risks based on their likelihood and potential

impact.

o How to do it:

$$ For each risk, rate:

$$ Likelihood: Low, Medium, or High.

$$ Impact: Low, Medium, or High.

$$ Identify the risk with the highest combination of likelihood and impact.

$$ Example:

$$ Delays at ports $$ Likelihood: High, Impact: High $$ High

Priority.

$4.$ Propose Mitigation Strategies $(7-10$ minutes$)$:

o Task: Develop two strategies to reduce the impact or likelihood of the highest$-$

priority risk.

o How to do it:

$$ Think of actionable, realistic steps the company could take.

$$ Explain how these strategies would work and why they are effective.

$$ Example:

$$ Risk: Delays at ports due to labor strikes.

$$ Strategy $1$: Diversify suppliers across regions to reduce reliance

on a single port.

$$ Strategy $2$: Establish contracts with alternative logistics providers

for emergencies.

$5.$ Create Your Deliverable $(5$ minutes$)$:

o Task: Summarize your work in one of the following formats:

$$ Written Summary $(1$ page$)$:

$$ Include the risks, their assessment, and your top strategies.

o If you are attending the live lecture prepare to discuss the group findings.