Summary
The SIOP Risks & Opportunities screen is in place specifically for the SIOP best-practice of calling out risks and opportunities, and what to do about them in your monthly SIOP meetings.
The intended use of this screen is to use it as a gathering place for all risks and opportunities your organization faces, at any level of aggregation, which you can then use for discussion during SIOP meetings, and subsequently make forecast changes in response to (or not). This ensures that all issues are being addressed and then acted upon to maximize the organizations response to change over time. This article walks through the various tabs on this screen and their purpose.
Column Description
At the left, StockIQ will show the selections at the highest level of your forecast hierarchy. You can change this using the Display Options (see below).
When you select something in your list, it will populate any R&O's that exist for that item or any hierarchy level below it in the Risks & Opportunities grid.
As with Forecast Manager, there is also a tree view where you can navigate up and down your forecast hierarchy, as well as a 'recently used' selections list.
Risks & Opportunities Grid
The main part of this screen is the R&O's grid. Click the "+" icon to add a new Risk or Opportunity (R/O).
The grid contains the following columns:
- +/- (Risk or Opportunity) - These icons show if the record is a risk or an opportunity
- Node Title - Filled in by StockIQ, this shows you a label of where/what this risk is recorded.
- Status - What is the status of the Risk or Opportunity?
- Open - This is a brand new, open, unaddressed R/O
- Forecast Adjusted - We have adjusted forecast to account for this and want to continue to watch this during SIOP meetings.
- Ignored - We have decided this R/O is not worth further discussion and no action taken.
- Closed - All effects have been applied that we want to and we've resolved any actions/issues.
- Description - Your description of what the R/O is.
- Action Required - Your evaluation of what action is necessary. This can be coupled with the "Action Due By" column to have a sense of when you need to act.
- Notes - Any other notes salient to this R/O
- Probability - Your evaluation of the likelihood of this R/O coming to fruition
- Units - The unit effect of this R/O. If you fill this in, SIQ will attempt to fill in the appropriate COGS and Revenue impacts if not provided.
- COGS - The COGS effect of this R/O. If you fill this in, SIQ will attempt to fill in the appropriate units and revenue impact if not provided.
- Revenue - The Revenue effect of this R/O. If you fill this in, SIQ will attempt to fill in the appropriate COGS and Units impact if not provided.
- Impact - Shows the impact of this R/O relative to the others shown in the list as a percentage, based on the R/O impact measure, which is Revenue by default.
- Importance Score - Shows the importance of this R/O, which is its impact multiplied by its probability. In this way, large impact, high probability R/O's are prioritized, allowing you to deal with these first.
- Start Date - When does this R/O possibly start, such as when is an account going to come online or be lost?
- End Date - When does this R/O effect end, such as a temporary outage or warehouse move?
- Action Due By - When must you decide what to do about this R/O, such as 1-lead-time away from when you might need to adjust purchasing in response to its effects
- Days Until Due - Calculated by StockIQ, this is how many days until that action due by date, if provided.
Impact & Probability
This is a bubble-style chart showing the intersection of impact (e.g. dollar value impact) and probability for your R&O's. Higher impact and higher probability are shown towards the right and top of the chart.
Risks are shown in red, Opportunities in green. Larger bubble size indicates larger impact.
Gain & Loss
These three pie charts show three discrete bits of data in visual form:
- Gain & Loss - What is the revenue associated with all opportunities and risks under this selection
- Risks - Shows individual risks and their revenue impacts
- Opportunities - Shows individual opportunities and their revenue impacts.