ASSESSING CRITICALITY AND IMPACT

Impact Analyzer

The Impact Analyzer provides support in assessing the impact of a risk event and creates transparency about criticality and dependencies in the supply chain. To this end, central questions (e.g. relating to replacement period, degree of substitutability, availability of alternative suppliers) are defined, and the impact on sales, margins or EBIT, measured. Impact assessment is a prerequisite for appropriate preventive and reactive measures, and the basis for developing a risk management and portfolio strategy.


Transparency about Criticality and Impact

  • Display of threat level/likelihood of occurrence (Risk Score) and impact/criticality based on impact parameters (Impact Score)
  • Color visualization for the level of risk and criticality
  • The size of the objects reflects the absolute extent of loss or damage (the larger the object, the higher the potential financial loss in terms of company sales or profit)

Assessing the Impact

  • Best Practice impact parameters included in scope of delivery - "All Inclusive"
  • Configurable impact parameters allow individual mapping of customer-specific requirements, and market and sector-specific data
  • Product group and/or article-specific impact assessment enables different criticalities at suppliers with wide product ranges to be recorded

Determining the Impact Volume

  • Simple parameter selection in extremely user-friendly configuration
  • Instant display of input and modifications ensures user acceptance – results are immediately available
  • Determination of relative impact ("none", "low", "medium", "high", "extreme") and assessable financial impact (e.g. loss of sales)

Analyses

  • Product category and organization-specific risk portfolios
  • Drill-down analytics for identifying optimization potential
  • Creation of complex analyses for risk prevention, e.g. determination of critical supply chains (according to product category, business unit, potential loss of sales, etc.)

Supply Chain Risk Management Step 2: Assessing Risks  

Combining risk information (via the Risk Radar) and criticality data derived from determining the impact (via the Impact Analyzer) enables urgent needs for action to be identified so that risks can be addressed in a proactive manner using appropriate measures (via the Action Planner), thereby ensuring the success of the company.

Read more about the step-by-step approach, and conceptual and organizational implementation of risk assessment (Impact Analyzer)!

Download Whitepaper