This article examines the differences between risks that are rare and frequent and proposes a brand new, improved risk measurement and prioritization approach to account for the characteristics of uncommon risks. Decision makers' changing idiosyncrasies are integrated into this procedure such that risk management could be brought into alignment with the preferences of an individual manager.
Also woven into this complex set of events is the notion of detection, which is familiar to those who have exerted failure modes and effects analysis (FMEA), but new in the area of supply chain risk management.Seldom risks are, by their nature, unsettling: unforeseen disruptions are always present, likelihood estimates are inaccurate, and complete data collection is not possible. The risk management framework that was presented takes into account these difficulties. While the projected ordinal scales are perhaps unsettling to many who want greater precision, measurement approaches must fit the preciseness which is possible. By considering rare dangers as well as regular the risks can be better placed to deal with the unforeseen.
PUBLICATION DATE: July 15, 2014 PRODUCT #: BH618-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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