NAME: OKINE PRINCE

INDEX: 01180701D
COURSE: ANALYSING RISK IN PROCUREMENT
3B
MID SEMESTER EXAMINATION
QUESTIONS
Q1.In developing a risk management strategy, retailers in the food supply chain will need to
involve suppliers and engage them in the risk management process.

Outline THREE ways in which this engagement can be achieved.

Q2. Define organizational culture and explain in details the cultural web of risk management.

Q3. Explain in details the term 'resourcing risk awareness and mitigation'.

ANSWERS
Q1. The three ways in which engagement with suppliers in developing a risk management
strategy can be achieved are as follows:
 Profile your suppliers on the basis of both risk and impact. Visit high risk/high impact
suppliers the most regularly. Conduct regular checks on your supplier’s buying
standards and policies.
 Deal with people you trust, You deal with people [suppliers] over a long period of
time so you build a good relationship. You build a dependency on each other, so you
cannot afford to have a problem, because it can destroy your brand.
 Recommend guarantees, service levels and key performance indicators (KPIs) in
contracts with food suppliers to check and ensure that what you are buying is what
you are buying and there is legal recourse against a vendor if it is not doing that.

Q2. Organizational culture is the collection of values, expectations, and practices that guide
and inform the actions of all team members. Think of it as the collection of traits that make
your company what it is.
The cultural web of risk management are as follows:
 The Cultural Paradigm is the core of the web. The paradigm is the core beliefs
and motivations of the organisation. It is supported by six cultural influences:
 Stories: How an organisation understands and explains itself. Think of this as the
collective ‘memory’ of an organization. For this element, it is helpful to think about
the stories that organizations tell
 Rituals and Routines: The accepted norms and practices. These are the various
behaviours and actions that are acceptable in a company. Routines can also be
 understood as expectations, which could include what an employee can expect
coming into work every day, leaving work, or what activities throughout the day look
like.
 Symbols: Physical artefacts. The unofficial and official representations of culture.
Symbols play their role in the cultural web model as part of employer branding, or
organizational branding, more generally. Think of it as anything visual: logos,
branding, the way the office looks, dress codes at work, advertisements, and more.
 Organisational Structures: Formal structures and hierarchy, as well as the
informal routes of power and influence. There are two key elements at play in this
element of the cultural web, so let’s define them right out of the gate. We have:
Written influence
Unwritten influence
 Power Structures: The people and the systems who have the power to get things done.
This is what some call ‘real power’ within an organization. It is essentially the centre
or power, and it can take many different forms. It could be one person, a handful of
executives, an entire group, or a department that has influence over the entire
company.
 Control Systems: How an organisation controls how things are done. The next
element is based on how control is exerted in an organization. We may also think
about this in terms of performance management, and how employees are graded on
how they work and how they succeed in their various roles.

Q3. Resourcing risk awareness and mitigation are as follows:

1. Human resources: The implementation of risk management requires the allocation of
managerial and staff time to risk identification, assessment and mitigation activities.
This may simply be embedded in day -to- day workloads but it may also require
additional responsibilities, additional risk focused activities or added layers od
management.
2. Informational resource: Risk judgements must be based on sound information – and
this required a robust internal and external management information system (MIS)
that can supply appropriate and timely data in appropriate formats.
3. Infrastructure development: may be required for new risk management initiatives,
including the development of management and risk information systems, templates,
committees and governance structures.
4. Financial Resources for risk management include adequate budgetary provision for
costs of information, managerial and staff time, mitigation measures and costs of
pursuing opportunities (investments, innovation, product development and so on).
5. Time resources: include the adequate allowance of managerial and staff time for risk
management activities and also effectiveness scheduling and time management.
6. Physical resources: include safe and well- maintained premises, plant, machinery and
vehicles; protective and safety equipment; safe and secure storage facilities for
hazardous substances and general inventory; demand-management inventory levels;
and so on.