1. SCOR® Risk Management Team Update
SCRLC Meeting
19 May 2010

2. Agenda SCOR® Risk Management Overview Proposed Updates for SCOR® 10.0
Other SCC Risk Management Activities

3. Ideally, supply chain risk management addresses the entire supply chain.
Customers
Suppliers
(And outsource
Manufacturing)
Suppliers’
Environment
Customers’
Organization
Organization’s Environment
Customer
Facing
Supplier
Internal Facing
Global Environment
Relationship Risk
Supplier Performance Risk
Human Resource Risk
Supply chain disruption risk
Supplier Environment Risk
Market Dynamics Risk
Disaster Risk
Political / Country Risk
Supplier Financial Risk
Regulatory Risk
Financial Risk
Distribution Risk
Relationship Risk
Market Risk
Brand / Reputation Risk
Product Liability Risk
Environmental Risk
Political/ Country Risk
Operational Risk
Technical Risk
Financial Risk
Legal / Regulatory Risk
Environmental Risk
HR / Health and
Safety Risk
Political/ Country Risk
Copyright © Supply Chain Council  All rights reserved. 3

4. SCOR® views the supply chain as built up of five distinct management processes.
Deliver
Make
Source
Plan
Return
Enable

5. SCOR® 9.0 Enable Processes
ER.9
ED.9
EM.9
ES.9
EP.9
Manage Supply Chain Risk
ES.10
Manage Supplier Agreements
ER.8
ED.8
EM.8
ES.8
EP.8
Manage Process Regulatory Compliance
EP.10
Manage Financial Plan Alignment
ER.7
ED.7
EM.7
ES.7
EP.7
Manage Process Configuration
ER.6
ED.6
EM.6
ES.6
EP.6
Manage Integrated SC Transportation
ER.5
ED.5
EM.5
ES.5
EP.5
Manage SC Capital Assets
ER.4
ED.4
EM.4
ES.4
EP.4
Manage Process SC Inventory
ER.3
ED.3
EM.3
ES.3
EP.3
Manage Process Data Collection
ER.2
ED.2
EM.2
ES.2
EP.2
Manage Performance of Process
ER.1
ED.1
EM.1
ES.1
EP.1
Manage Business Rules
Plan
Make
Deliver
Return
Source
Copyright © Supply Chain Council  All rights reserved. 5

6. What’s new for SCOR® 10.0?
Updated Best Practices reflecting team research, member feedback, and industry recognized practices
Metrics Revisions to better reflect the role of SCRM in supply chain strategy and execution
New Risk Research to help SCC members understand risk identification, quantification, mitigation, and response techniques.

7. SCOR® 10.0 will have 13 Risk Best Practices
Supply Chain Risk Management (SCRM)
Supply Chain Risk Identification
Supply Chain Risk Monitoring
Supply Chain Risk Assessment
Mitigate Source Risks
Crisis Communications Planning
Risk Management Programs Coordination with Partners
Supply chain business rules configured to mitigate risk
Supply chain information configured to minimize
Supply chain network configured to mitigate risk
Bowtie Risk Management Approach
Risk Program Monitoring
Network Prioritization for Risk Identification
Updated
New

8. Proposed Metrics Changes for SCOR® 10.0
Proposed SCOR® 10.0 VAR Hierarchy
Value at Risk (VAR) moved from Cost to Agility
Level 1 (KPI) metric
Include option for non-monetary impacts
Include option for confidence intervals
Risk Mitigation Costs enhanced
New definition
Level 2 metric

9. Risk Management Team Continued Research
Updated research into metrics and best practices
Participation with Supply Chain Risk Leadership Council
Coordination with MIT on risk survey

10. Other Research Activities
In depth interviews with SCRM leaders
Expansion into the DCOR® Model
Continued coordination with SCRLC (joint event?)

11. Risk Management Special Industry Group
The Risk Management SIG will be a member managed group dedicated to furthering the research and application of risk management.
Call for members planned in mid-2010
Charter will be to lead SCC risk management activities
DCOR and CCOR inclusion
Future SCOR improvements
Research efforts
Training
Member outreach
Structure will follow other SCC SIGs
Convergence
Aerospace and Defense
Oil and Gas

12. One Day SCOR SCRM Workshop
Speaker Notes
One Day SCOR SCRM Workshop
Supply Chain Risk Management (SCRM) Fundamentals
Introduction to each SCRM component and how each can support the firm's supply chain management
Discussion of SCRM process and all components
Presentation of several example projects and discussion of component use for each specific project
The SCOR Model and Risk management
Background, components, strategies and implementation
Participants who complete this works will be able to
Understand the purpose and goals of SCRM within the context of their firm and supply network
Develop a basic SCRM strategy and plan for their organization
Understand and articulate the business value of a SCRM program
Prerequisite - Attendees must be conversant in the basic SCOR model in order to attend this workshop. The SCOR Framework training includes the required basics
Supply-Chain Council Executive Briefing & Houston Area SCOR Users' Forum 12

13. SCOR® Risk Management Team Update
Taylor Wilkerson 13