How do you foster a culture of risk awareness and learning in your supply chain organization?

In addition to articulating strategy, it is important to outline the various risk factors as well as encourage a culture of curiosity and open dialog. Reason being, over time, the prioritization of risk factors may evolve and clearly outlining factors and objectives will support future state alignment and learning. Factors in risk management may include material scarcity, climate impacts, logistics and lead time, geopolitical factors, product segmentation priority, regulatory considerations, manufacturing qualifications...the list goes on. In a culture of curiosity and open dialog, these factors can be properly identified and prioritized as you move through SCRM concepts, best practices and framework development.

The risk appetite must be clear internally in the organization and shared among the main ecosystem partners. However, more than defining and communicating it, it must be managed. In other words, the risk management and mitigation strategy must be well deployed to the gemba (real location of operations) so that down to the micro level, each team consistently knows how to provide its specific contribution to the whole.

Regularly carrying out risk assessments and disseminating results to the entire team in order to identify potential weaknesses and mitigation techniques is a necessary step in fostering a culture of risk awareness and learning. Encourage ongoing development by putting in place training programs that emphasize risk management and resilience, as well as by encouraging candid conversations about errors made and lessons learned. Acknowledge and incentivize proactive risk management practices to help the organization as a whole understand how important it is to remain vigilant and to keep learning.

Understanding and clearly defining your organization’s risk appetite is foundational. Personally, I see this as similar to knowing your own boundaries in everyday life—understanding how much risk you are willing to take helps you make better decisions. In a supply chain context, communicating this effectively ensures that everyone knows the limits and can operate within them, making it easier to manage potential risks proactively.

A mentalidade consciente dos riscos precisa permear toda a organização em todas as funções. É importante atingir com clareza e eficácia o desdobramento da estratégia de riscos até alcançar toda operação no gemba (local real). Para isto, mecanismos e abordagens de gestão podem auxiliar e muito a comunicação vertical e transversal como forma de se falar sobre problemas e riscos potenciais. É o caso do "Gerenciamento Diário", que permite o desdobramento da estratégia e desenvolvimento da equipe todos os dias, em que a mentalidade consciente dos riscos pode ser explorada, discutida e variáveis de controle monitoradas todos os dias em todos os níveis da estrutura organizacional.

This used to be the principal challenge in getting buy-in for SCRM, but the supply chain snarls of the Covid era have made the need abundantly clear to most CSCOs. In my experience, you do need high-level organizational buy-in to stand up a successful SCRM program. It will be limited in effectiveness if only driven by siloed functions (e.g. only procurement), without involving Logistics, Planning, Product/R&D, and suppliers.

Fostering a risk-aware culture means encouraging everyone to think critically about potential challenges and uncertainties. For me, this is about creating an environment where team members feel comfortable discussing risks openly, without fear of repercussions. It’s like being in a family where open communication about concerns leads to better preparedness and collective problem-solving. When everyone is risk-aware, the organization is better equipped to respond to unexpected situations.

Implementing a risk management framework in your supply chain organization can foster a culture of risk awareness and learning. Start by identifying potential risks through comprehensive assessments. Develop clear protocols for risk mitigation, including contingency plans and regular training sessions. Utilize real-time data analytics for ongoing monitoring. Encourage open communication and feedback to continuously improve risk strategies. Celebrate successes and learn from failures to build a resilient, proactive culture. #SupplyChain #RiskManagement #BusinessContinuity #Leadership #ContinuousImprovement

A mudança de cultura se dá pela transformação das ações práticas. Antes de se falar do aspecto cultural, ou ainda da participação do indivíduo, deve-se olhar para as condições dos processos e dos instrumentos de gestão que na prática, e independentemente da interferência das pessoas, permitem e estruturam o gerenciamento eficaz dos riscos. A prática sistemática, portanto, processual e cadenciada é o fator chave para implementar uma estrutura efetiva de gerenciamento de riscos.

Implementing a solid risk management framework is akin to having a safety net. It ensures that when risks do materialize, there’s a structured way to handle them. Personally, I believe that a good framework provides clarity and direction in times of uncertainty, much like a well-planned emergency drill. It allows the organization to mitigate risks efficiently and minimize potential damage.

Leveraging data and technology fosters a culture of risk awareness and learning in your supply chain by providing real-time insights and predictive analytics. These tools help identify potential disruptions and inefficiencies early, enabling proactive risk management. Data-driven decision-making promotes transparency and accountability, while advanced analytics facilitate continuous improvement through learning from past incidents. Empower your team with the right technology to enhance resilience, drive innovation, and maintain a competitive edge. #SupplyChain #DataAnalytics #RiskManagement #ContinuousImprovement #Innovation #SupplyChainResilience

Explore the integration of IoT sensors throughout your supply chain to gather real-time data on various risk factors such as temperature fluctuations, shipment locations, and inventory levels. This data can feed into a centralized risk dashboard, providing a holistic view of your supply chain's risk landscape. Combine this with machine learning algorithms and AI to predict potential disruptions and suggest proactive mitigation strategies, moving from reactive to predictive risk management.

In today’s digital age, data and technology are invaluable in risk management. I see this as using tools like GPS when driving—it gives you real-time information and helps you navigate through potential hazards. In a supply chain, leveraging data and technology can provide insights that predict risks and offer solutions before issues escalate, making operations smoother and more resilient.

Aprender e melhorar continuamente é a chave para perenização e sustentabilidade na gestão de riscos. Rodar consistentemente o ciclo PDCA é o fundamento para o aprendizado e melhoria contínua. Isto significa que a gestão de riscos não se resume apenas às etapas P e D, ou seja, que basta identificar, comunicar e estabelecer ações de mitigação ou gerenciamento, mas sim conferir e agir a dinamicamente.

Implement a formal "lessons learned" process after each significant supply chain disruption or near-miss event. This should include a structured analysis of what happened, why it happened, and what can be done to prevent similar occurrences in the future. Create a knowledge base of these lessons and integrate them into regular training sessions and risk management protocols. This approach ensures that your organization not only learns from experiences but also evolves its risk management practices over time.

Continuous learning and improvement are vital in adapting to new risks and challenges. This mindset reminds me of the importance of lifelong learning—just as we continuously improve our skills and knowledge in personal life, organizations should do the same to stay ahead of emerging risks. Reflecting on past experiences and incorporating those lessons into future strategies strengthens the overall risk management process.

It's important to apply cross-functional collaboration across roles within the supply chain itself and with other functions in the company too. Sharing knowledge and experiences enhances understanding of risks and how each function impacts others.

Beyond the structured approaches, it’s important to consider the human factor in risk management. Encouraging a culture of empathy, accountability, and collaboration can enhance the effectiveness of risk strategies. Just as in life, where understanding and support from others can help us navigate difficult times, a supportive workplace culture can help the organization navigate risks more effectively and foster a strong, resilient team.

INPUT + PROCESS = OUTPUT. Please remember the basics — For true excellence, focus on the ‘voice of the inputs’. All Process are no better than the quality of the inputs. There are usually many. Optimization comes at the input level.

Um fracasso na gestão de riscos, como em toda atividade de gestão, só é mesmo fracasso se não gerou nenhum aprendizado. Evidentemente que é preciso separar negligência de erros, contudo é corrigindo-se os problemas que o aprendizado se dá.