MGT 528 – Operations: Economics
and Strategy
6. Dealing with Risk
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Lecture Notes (Overheads Used In Class)
Reading (Preparation)
· Lai,
R. (2013) Operations Forensics, MIT Press; Ch. 5: Assessing Risks
· Simchi-Levi, D. (2010) Operations Rules, MIT Press; Ch. 5:
Risk Mitigation Strategies
Questions (Preparation)
· Pick a company and describe its main
operational risks in terms of process risks and one-off risks.
· Categorize those risks into a probability
(low/high) – severity (low/high) matrix.
· Accordingly, what risk-management strategies
would you recommend, especially for the low-probability
high-severity category of risks?
Background Reading (for future reference only)
· Risk Management
(Wikipedia)
· Value at risk (Wikipedia)