Today I picked a special article on corporate risks. “How Risky is your Company?” by Robert Simons of the Harvard Business School. Its a more business oriented view on how companies should handle risks, internally. But since internal risk management can be seen as a part of supply chain risk management, I also include it here.
This article is about how risky one company is. About the internal risk. And by these risks, the author does not so much refer to the production processes, but the softer risks of managing a company. The key contribution of Simons is the Risk Exposure Calculator. Of course not all risks are unintended. Most people would argue that risk is part of doing business, so a good risk calculator would only include the unwanted and unrecognized risks. It is also not the goal to find one specific number to pinpoint the risks of a company, but to give hints for improvement.