RMI-2302 Lecture Notes - Lecture 9: Hurricane Sandy, Risk Management
26 Oct 2016
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Risk in business and society - notes 9 (cont"d) This article focuses on supply chain - what events can cause a material disruption to an organization"s supply chain. Many companies have moved to just in time delivery, reducing the need to store excessive amounts of stock which can be costly. How can supply chain risks be identi ed and managed better. Real trade-off between ef ciency and potential disruption. Think about how an organization goes from raw materials to nished products on the market (a chain of events) From wiki: a supply chain is a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer. Anything that can interrupt the ultimate product delivery (anywhere along that supply chain). Risk management has often relied on looking at historical data to estimate frequency and severity of future losses. Works well for common supply chain problems: Forecast errors (not ordering enough, too much)
