Was Delta Fuel Hedge A Move Right In the Right Direction?

At last week’s SCLA conference in Phoenix a lot of the talk was about Delta Airlnes’s recent purchase of refinery capacity as a hedge against rising fuel costs. The consensus […]

BPI, Pink Slime and Velocity of Risk

At a gathering of SC executives yesterday I mentioned the Velocity of Risk concept and use the current BPI case as an example of why understanding this concept is important. […]

Risk.net: OpRisk North America highlights the limitations of risk management

Risk.net: OpRisk North America highlights the limitations of risk management

Good summary of recent OpRisk North America on Risk.net. Sample quote:

Mark Levonian, senior deputy comptroller for economics at the Office of the Comptroller of the Currency (OCC) in Washington, DC, opened the conference with his keynote speech on the morning of March 21 (the previous day had been devoted to technical seminars). He cautioned operational risk managers against relying too much on risk models.

“Op risk models should be a key part of the risk management process, but we have to ask ourselves whether the models are wrong. The use of models is crucial to good risk management today, but sometimes even the best models don’t work the way they are supposed to. In fact, all models don’t work sometimes. The risk that the models won’t work – model risk – is an operational risk in itself, and is a risk that has to be actively managed,” said Levonian.

CFO.com: How to Direct a Risk Team

CFO.com: How to Direct a Risk Team

Good piece in CFO.com on CFO’s role in leading RM. Interesting that SCM is #2 item on the list.

The End of Cheap China?

Good and balanced piece on CFO.com about the outlook for China manufacturing costs, a serious strategic risk for many Western firms. Full article here: http://www3.cfo.com/article/2012/3/supply-chain_china-soaring-wages-supply-chain?currpage=1  

The Return of the U.S. Manufacturer

Interesting piece in FT/Alpaville today by Lisa Pollack citing BOA/ML analysis of increasing strength of U.S. manufacturing sector. FT link: http://ftalphaville.ft.com/blog/2012/04/04/947201/the-return-of-the-us-manufacturer/

Forecasting Weather Risk: The State of the Art Moves Forward

There may be no more common external risk facing SC managers today than weather risk. Up and down the value chain, producers, processers and retailers are all impacted in one […]

The Role of The CRO in Operations

At a recent client meeting on SCRM I asked the senior SC executive how much contact he or his team had with the Chief Risk Officer of the firm. The […]