Become a certified expert in
Supply Chain Risk Management
A workshop designed to address the operational risks, financial planning, liquidity, credit risk in supply chains
This workshop covers the best practices in Supply Chain Security and Risk Management taking all aspects of risk. Operational risk is addressed of course but so to is financial risk. Many Supply Chain Risk Management Programs on the market ignore the financial contract layer of Supply Chain Management and it must be understood.
Supply Chain Resilience
Financing Supply Chains
Protecting Operating Margins
ISO 28000 On Supply Chain Resilience and ISO 31000 on developing a risk management framework with the focus on supply chains.
» Build a complete risk register and incident management program for supply chain disruption.
» Build a complete risk register for the supply chain taking that meets a quality and repeatable system that is resilient to uncertainty.
» Learn how to forecast, plan and price long dated trades across a supply chain business.
» Review different methods for reporting accounts receivables and the impacts on the net trade cycle of a business operating in a supply chain.
» Gain insight into the facilities that clients are employing to finance working capital and transfer settlement risk. Case Studies and examples given
Who is this ideal for
Account managers working with complex supply chains, financiers, planners, operations teams, collections units, procurement officers, business analysts, treasury units,
Session 1 -- ISO Standards
Review the different ISO standards that assist with supply chain risk management. Gain direct access to working case studies which assist management teams plan for supply chain Disruption
Session 2 - Risk Registration
Build a complete risk register up for upstream and downstream supply chains. Identify points of fragility and causal factors that drive disruption of a degradation of quality in the supply chain.
Session 3 - Control Assessment
Learn how to Identify and assess control points, how to build up a control network that can be used to improve the reliability of a supply chain.
Session 4 - Redundancy & Resilience
Work through various case studies to improve supply chain resilience and look at different practices across the planet. Look at the top ten methods to improve supply chain redundancy.
Session 5 - Measuring Risk
Learn how to not only assess supply chain risks but how to price and quantify them. Using different models such as Monte Carlo, supply chain managers can effectively quantify with
confidence the cost of disruption or loss in the supply chain.
Session 6 - Treating Supply Chain Risks
There are many ways in which different risks can be treated. Review different treatment practices from different industry sectors for responding to threats in the supply chain. Build up a benefit of cost for treatment model when planning to respond to supply chain risks.
Session 7 - SCR Dashboard Reporting
The session finishes up exploring different reports which can be used to capture and monitor risks in the supply chain. Reports are built up in Microsoft Excel and all models / reports are handed over to the class so that they can be taken away. Finally various dashboard monitors are reviewed and used to demonstrate how to set supply chain risk management policy.
Session 8 -- The SCF Framework
Look at all the moving elements needed to enable proactive financial planning and management in Supply Chain business models. Go through a check list of what needs to be in place.
Session 9 - SCF Instruments
Review the different financial instruments predominantly used in Supply Chains with working examples, understand the terminology and the foundational pricing models. Learn how to value a Supply Chain trade with and without risk.
Session 10 -- SCF Operating MarginsReview the key ratios of supply chain finance, performance, risk and how finance teams report internally to plan strategically.
Session 11 - SCF Liquidity Measures
Days Sales Outstanding, Days Inventory Held, Days Payable Outstanding. Learn how to calculate these per deal or across the entire supply chain business model. Benchmark different clients against the firms standard net trade cycle
Session 12 - Forecasting Time Series
Look at different ways to forecast taking in regressive techniques and seasonally adjusted methods for multi variate time series. Apply these models to both receivables and payables in the supply chain
Session 13 - Planning SWAP Lines
Look at extending Discounted Cash Flow to price long dated revolving supply chain sales. Understand how market risk can be priced in, whether an existing contract is priced correctly
and stress test the trade for Potential Future Exposure. A case study in a commodity business is explored.
Session 14 - Supply Chain Budgeting
Review different ways to budget in supply chains for both fixed assets and working capital. Understand how to break down costs into components to connect profit and cost centres within the business model. Explore Monte Carlo, Scenario Analysis, Data Tables in excel to extend the budgetary process across
the entire firm.
Session 15 -- Improving Collections
Look at methods to transfer settlement risk to financial intermediaries. Understand how bills of ladding and exchange operate, look at different payment terms including on acceptance, at sight or usance and see how they change the net trade cycle of a business.
Session 16 - Best Practices in the LC
Review traditional techniques for financing trade using letters of credit, compare different types of LCs, stand-bys, transferable paper, confirmed LCs and much more. See the benefits within each facility and balance out the costs
Session 17 - Financing Case Study
Progress through a complete business case study for financing a trade between Asia and Europe taking in the instruments, performance measures and financing options that are available to the business
Session 18 - New Trends in SCF
There are a lot of new developments in supply chain finance which are reducing costs for businesses from white labelling to silent payment guarantees. Explore the models.
Session 19 -- SCF Paper FinancingOnshore and Offshore factoring, forfaiting, tradesecuritisation and contractual payment terms restructuring (Red Clause / Green Clause) are often explored in unison to improve the net payment cycle of a business
Session 20 - SCF Asset FinancingReview other methods of financing working capital through Asset Backed Finance, a case study on warehouse financing is demonstrated to show how a business in Asia is able to forward sell and finance its merchandise. Move from tradition packing credit finance methods into asset backed finance and learn how to price the forward curve.
Session 21 - FSCF Due Diligence
When facing either buyers, sellers, importers, exporters in the supply chain, there are many different indicators to look out for which give finance departments an indication on whether a counterparty will be a credit concern or not. Look at credit scoring methods and due diligence methods for the accounts receivable portfolio. Look at different contractual methods to contain credit risk and improve accounts receivable reliability.
Session 22 -- Receivables Reporting
Progress through a complete Accounts Receivables Report, built from the ground up on transactional data. Use logistic regression to identify sound payment factors, separate the
portfolio into stratified samples to capture policy and fraudulent Activity.
Session 23 - Procure to Pay Cycle Reports
Look at different methods for reporting Pay to Receive Cycle liquidity in a business. Capture and then model specific factors which erode the operating margin. Understand how to establish finance policy around the Net Trade Cycle of a supply chain business.
Session 24 - Measuring Market Risk
Learn how to Identify and assess control points, how to build up Look at both stochastic ARMA models and forward methods for identifying and measuring market risk on accounts receivables
between currency pairs
Session 25 -- Value at Risk for Supply Chains
Build up a complete Value at Risk report for FX volatility on accounts receivables. Extend the VaR report from a single position into a portfolio of book of positions to identify both the
risks and opportunities in settling cross-border.
Session 26 - Session 5 - Liquidity Cycles & Risk
Build a complete report on liquidity of working capital across the supply chain, showing the costs for discounting in the supply chain. Explore Pool and Sweep and other cash
management strategies for reducing exposure to different payment pools in line with FX volatility.
Session 27 - Supply Chain Risk Transference
Look at hedging methods (futures, forwards and options) for transferring both FX and commodity price risks. There is a growing trend in the Middle East and Asia for Supply Chain businesses to hedge market risk and this session looks at best practices which are being used in industry today with easy to follow examples.
Session 28 - Practical Run Through
The three day program is closed by running through the practical exercises outcomes, handing over material and discussing any open items that were raised during the workshop.
All attendees are handed a CD that contains the material from the program and the trainer is available for question answering once the workshop is complete.
OUR EXPERT FOR THIS SESSION
Risk Framework Architect | Markets, Utilities, Supply Chains
Martin is a risk framework architect who designs risk, pricing measurement and management systems for banks, brokerages, exchanges, energy houses. He has more than 15 years’ experience developing bespoke risk reporting and scorecard solutions for institutions with a particular focus on operational, credit and market risk. He also has a very strong knowledge of ALM, treasury, trade and project finance and carries knowledge of structured products, investment and group functions. He has several years working with banks, power stations, telecommunication companies and commodities firms in risk. He is currently working with several companies throughout South East Asia and the Middle East, assisting these organisations build industry best practice risk frameworks. In the futures markets, Martin has worked closely with a stock exchanges in South East Asia assisting designing new commodity instruments and is an credited trainer for the International Academy of Financial Management on structured finance. Martin is a Six Sigma Black Belt project manager, has outstanding information technology skill, is able to program in C++, VB, VBA, S-Plus and R-Project for statistical analysis of data.
Certified CMNS Starts 4th of March 2022 in a Learning Bite Manner