Supplier Risk Playbook -

Instructions
1. Use the following table of contents to determine the category of risk
2. Select the appropriate link to open the necessary risk form(s)
3. Complete the appropriate spreadsheet(s) and be prepared to provide that information to Rockwell Collins should it be requested

Operational Risk

Financial Risk/Business Risk

Environmental/Geographic Risk

Commodity/Component/Compliance

Supply Chain Services surveys suppliers every six months to identify any projects that could impact material availability. These projects include ERP implementations, plant moves or closures, product line moves and union contract negotiations.

Each year we experience disruptions to supply caused by one of these events. It is critically important we assess and mitigate these projects whenever they are identified.

Financial stress and risk occur for a number of reasons including macro economic factors, market decline, supplier mismanagement, etc.

We need to be alert to financial stress because it often results in supplier performance instability and/or bankruptcy.

Many of our suppliers are located in regions prone to a geographic risk. While these risks are low probability, they have a high potential impact.

As an enterprise we must react quickly and competently to address any one of these events when they occur.

Many of our suppliers provide products that come from highly fluctuating industries which can result in difficulties maintaining our continuity of supply.

Second tier supplier issues can occur due to lack of visibility into the practices/health of our suppliers' suppliers.

Regulatory sanctions may result from our failure to comply to government laws and regulations as well as our own internal policies and procedures.

ERP Implementation

Bankruptcy

Natural Disaster (Earthquake, Hurricane, Pandemic)

Raw Material/Allocation

Product Line or Part Move

Merger and Acquisition

Terrorism

Counterfeiting

Facility Move or Closure

Key Personnel Change

Political Unrest

Regulation

Union Negotiation

Financial Stress

Part Change

Capacity or Capability

Second Tier Supplier Change