MGT 528 – Operations: Economics and Strategy

 

6. Dealing with Risk

 

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          Lecture Notes (Overheads Used In Class)

·       Lecture 6 – Slides

 

 

 

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)