Risk Management Plan

RISK MANAGEMENT PLAN

Final Project

Risk Management

(Interactive Workshop)

INTRODUCTION

ABC University known as a centre of excellence for teaching, applied research and learning, ABC, a public post-secondary institution, is producing quality graduates that are in demand by employers across the country and around the world.

ABC is a dynamic, internationally known university supporting a population of approximately 18000 full-time and part-time students, including almost 2,000 international students, 1500 aboriginal students, and employing over 2,000 faculty and staff.

ABC has invested more than $4 million for new project called “Project Aurora” which will significantly improve the university’s involvement in competitive market place. Now the Management of ABC has decided to implement the project by phase by phase strategy for the supply chain model. I believe this process will mitigate some of the alarming internal risk to allow Supply chain division to empower more responsibilities toward standardizing the sourcing practise within ABC.

RISK IDENTIFICATION

I have identified following important risks that ABC need to be address in every level of its operation.

1. Workforce

75% of workforce is aged and they are not trained with new evolving technology to cope with competitive work requirement. They still believe in traditional way of doing thing is enough to fulfill their day to day tasks. It is very challenging to implement change management among this group. This is obvious that this gap needs to be replaced with young energetic fast face workforce.

1. Most of the procurement process done after the fact

It is normal that all the department do business for their day to day service needs with vendors without PO no a service agreement. I process more than 50% of POs invoice attached. The department don’t consider the risk in the first face rather focusing to complete their day to day require without realizing the strategic risk factors.

1. Threat to confidential financial information

In recent past I have noticed that there are many fishing emails, scam, virus and trying to manipulate fake banking information have sent to our email inbox. This shows that our IT system need to be upgrading to mitigate the confidential property theft. I can recall that we had many days system was down due to virus infiltration within our IT system. The probability of occurrence is very high and high recovery cost.

1. No contract management in place and follow up checklist

There are many services are continuing without a service agreement. This need to be address and identify the vendors whom needed to engage into proper service agreement with necessary insurance clauses. Also need to engage negotiation with high annual spent vendors. Negotiate to reduce the cost and identify any value-added services to University. On the hand maintain up to date contact management folder to monitor and follow up service renewal.