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Is It Time to Hedge Against Oil Hikes?

Is It Time to Hedge Against Oil Hikes?

 

Interesting piece on CFO.com has a piece by Vincent Ryan on using Monte Carlo simulation to model average price targets oil.

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Economics

China Risk: Which Lane Are You On?

At a recent meeting, a senior executive at a major global brand asked me what other companies are doing about “China risk” these days. This morning, I came across a piece by Morgan O’Rourke on China risk in the new edition of Risk Management magazine (1). It seems, O’Rourke writes, that the events in Japan […]

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Economics

WEF Publishes New Global SC Risk Report

The World Economic Forum’s Risk Response Network has just published a new study which Accenture helped prepare. The Executive Summary is below: Global supply chains and transport networks form the backbone of the global economy, fuelling trade, consumption and economic growth. Trends such as globalization, lean processes and the geographical concentration of production have made […]

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Economics

SC Risk and Shareholder Value: The Conversation Begins

A recent piece on Bloomberg.com by Peter S. Green notes a fascinating new line of inquiry some investment managers are starting to take. Notes the piece: Jonas Kron is worried about water. The investment adviser at Trillium Asset Management, a $900 million fund manager that focuses on environmentally sustainable investment, fears the world’s dwindling supply of fresh water is […]

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Economics

The Risk-Price Trade-off

On Saturday the NY Times ran a short piece by Thomas Fuller about the floods in Thailand and the impact they are having on global Hard Disk Drive (HDD) availability.(1) The article states that “Before Thailand’s great flood of 2011, companies like Panasonic, JVC and Hitachi produced electronics and computer components that were exported around […]

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Economics

Too Much Manufacturing Risk?

There was an interesting piece on FT.com by Jonathan Soble on Jan 4th on the role of manufacturing in Japan. While the US bemoans that not enough is made here, some in Japan wonder the opposite: if they are too exposed to manufacturing as the sole source of competitiveness: Perhaps most worryingly, many in Japan […]

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Economics

The Changing Role of Hedging in Sourcing

A few years ago, the number of Sourcing organizations that had a serious focus on hedging to deal with risk were few and far between. Outside of some specific  industries with a traditional dependence on commodities, few CPO’s were actively sponsoring the development of sophisticated financial risk management teams within their portfolio of responsibilities. A […]

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Economics

The #1 Global Risk of 2011 Is Sticking Around

Late in 2011, Lloyd’s published a survey of global risk that outlined the major risk concerns of business executives around the world. I found the #1 risk on the survey, “Loss of Customers,” quite interesting. The Lloyd’s report describes the problem this way: From concern about the availability of credit, business leaders are now facing […]

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Economics

The Risk of Too Many Choices

Looking back at 2011 one of the most remarkable stories has been the continued decline of Research in Motion (RIM). A recent NY Times piece speculated that perhaps some of the problem lies with the many different models (and their sometimes confusing names) that RIM developed in its push to be more consumer friendly.(1) Ian […]

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Economics

Risk Metrics: Value at Risk (VaR) Models in SCM

One of the more contentious debates in finance over the last couple of decades has centered on the value of what are known as Value at Risk or”VaR” models. Indeed, a VaR model is one of the protagonists in the 2010 film “Margin Call” about the collapse of the housing market. VaR models, originally developed at […]

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