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.
Good piece in CFO.com on CFO’s role in leading RM. Interesting that SCM is #2 item on the list.
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=1Read more
David Rowe, writing in the March issue of Risk seems to think so. Full article here: http://www.risk.net/risk-magazine/opinion/2152993/hedges-created-equalRead more
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/Read more
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 way or another by climate and climate volatility. Yet only a small number of firms make a serious and consistent effort to model weather risk […]Read more
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 answer was “not much” and then “it’s usually to provide input into an ERM update for the board.” Besides that reporting discussion, I asked, does […]Read more
In an earlier post I mentioned that we are currently working with Professor Alex Triantis of the Robert H. Smith School of Business to develop a new set of risk metrics. One the metrics we have developed for use in our work is what we call “Supply Chain Cost of Risk” or SC CoR. SC […]Read more
Good piece in the latest issue of Operational Risk & Regulation on managing physical security risk. A quote: Companies operating in dangerous places need to have structures in place to ensure business continuity. According to Adrian Stones, a director at Alaco, the London-based business consultancy: “It is absolutely critical to understand the landscape in which […]Read more