ABSTRACT
Step 1: Assemble a Cross-Functional Team of Risk Experts An extended team of experts from across an organization should be selected to help with rapid and thorough identification of risks. Team members can be chosen from among risk managers, statistical analysts, operations research analysts, manufacturing engineers, purchasing staff buyers, commodity experts, supply chain and logistics managers, operations IT systems experts, etc. Each team member is expected to represent their business unit and assist with identifying and gathering quantitative and qualitative risk data. Traditionally in most large organizations, risk management as an expertise has a corporate home in insurance and risk financing or audit services. However, the real risk owners for manufacturing and supply chain risks are in operations. Thus, we advocate that the team must include subject matter experts from business operations who have handled many of these supply chain and manufacturing disruptions in the past. These operations specialists can contribute significantly in identifying risks and explaining event severity from an operations perspective.
