Risk Based Monitoring Optimizing Clinical Monitoring Practices

Corporate insolvencies worldwide are forecasted to decrease by 1% to 351,300 in 2014 compared to 354,850 in 2013, supported by the growth in world GDP by 3.1%. In North America the corporate insolvencies are expected to decrease by 5% followed by Asia with 1%. On the other hand, Central & Eastern Europe, corporate insolvencies are expected to increase by 3% in 2014 followed by Africa & Middle East with 2.9% and Western Europe with 1%. What happens to a company if its supplier becomes insolvent and ceases operations? The entire supply chain of the company will be disrupted leading to the loss in business until an alternate supplier is engaged with. How to identify such a risky supplier and avoid the loss of business? This paper consists of the holistic framework (BRAHMA) to determine the risk associated with a supplier. Proposed Solution The framework estimates the risk associated with a supplier by systematizing it into quantitative risk and qualitative risk. Quantitative risk is defined as the risk arising due to the supplier?s financial performance in trailing twelve months (TTM). It is further analyzed to provide outlook on the supplier?s financial health in near future. While, Qualitative risk of the supplier is estimated from various parameters such as regulations, expansions, restructuring, foreign exchange rates etc. It is analyzed to increases the insight into supplier health. Quantitative risk evaluation deals with numerical quantities, on the other hand, Qualitative risk deals with qualities or characteristics.