Economics

Supply Chain Integrity at Product Level: New Article Published

I have just published, along with my co-author Justin Picard (Chief Scientist at Advanced Track and Trace in France), a new article on product level integrity and risk in the new World Economic Forum “Enabling Trade Report 2012”. The World Economic Forum’s Global Enabling Trade Report series focuses on measuring whether economies have in place […]

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Economics

GM Food Debate Stirs in US

Excellent piece in NYT.com today by AMY HARMON and ANDREW POLLACK regarding the growing drive to label genetically modified (“GM”) food in the US. Quote: “For more than a decade, almost all processed foods in the United States — cereals, snack foods, salad dressings — have contained ingredients from plants whose DNA was manipulated in a laboratory. Regulators and many […]

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Online Seminar: Managing energy costs in energy intensive industries – best practice and tools for maximising profit margins

Managing energy costs in energy intensive industries – best practice and tools for maximising profit margins

Date: Thursday, May 31, 2012
Start time: 2.30pm BST

With ever escalating energy prices eroding already pressured profit margins, managing energy costs becomes a priority for energy intensive industries world-wide. What strategies exist to mitigate today’s raising energy costs? What are the latest tools available to forecast, assess and manage price risk?

Join Energy Risk Editor Stella Farrington and a Panel of experts for a Seminar exploring the challenges faced by corporations and find out about key trends and tools in integrated energy risk management.

 

Register here: https://event.on24.com/eventRegistration/EventLobbyServlet?target=registration.jsp&eventid=457777&sessionid=1&key=D957789C3B1056A3993C95F1B7F6E3A4&EDID=2OG0IJ2-JDWB-160MWC-7AQDE-30U1B-v1&sourcepage=register

Economics

Logistics Management: “Can speculators profit from declining oil?”

Interesting editorial from Derik Andreoli today on Logistics Management web site about the role of speculation in oil prices. Quote: “As a logistics manager, understanding that oil and fuel prices are a function of supply and demand rather than the rogue actions of “evil speculators” is important. If speculators are driving prices above a level supported by the fundamentals, […]

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Economics

Risk.net: Storms, warm winter, fuel interest in weather derivatives

Weather hedging interest up, according to 17 May piece on Energy Risk site. Intro: “The extreme weather that hit North America recently has spurred interest in tools designed to hedge weather risk, according to participants speaking at Energy Risk USA The market for weather derivatives has received a boost from the unusual weather that affected […]

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Economics

Risk.net: Why, when and how should loss data be scaled?

Interesting piece in Ops Risk & Regulation on scaling of data in loss analysis. Intro: “An issue for op risk managers is scaling modelling data to a relevant size without sacrificing its value through over-manipulation. Using a query model to determine which data to use makes the process easier and reduces the risk of cherry-picking […]

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Economics

FT: “Greece is falling out of Europe”

Good piece by Philip Stevens (despite the obvious Scylla and Charybdis reference) on inevitable Greek departure from Euro in May 10 FT. He notes: “This fundamental contradiction is not sustainable. The moment is approaching when the decision will be taken out of the hands of the politicians in Athens. Financial deadlines are looming. The outcome […]

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Economics

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 at the conference, in the general press, and among the commodity specialists I have polled informally, is that Delta’s move was a bad one — […]

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Economics

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. Here we have a company making a perfectly legal product that in the space of a few weeks finds itself questioning it’s very survival, all […]

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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.