Why go hungry? How analytics can turn a risk appetite into a competitive advantage
Abstract
It is no secret that global corporations see risk as negative. Executives trained to focus on loss aversion are not thinking of risk as an opportunity. Yet, if businesses can increase their risk appetite, operations can embrace supply chain risk as a true competitive advantage. In other words, if organisations analyse risk, they can accept a certain amount of reasonable risk in order to reach strategic goals. When unexpected supply chain disruptions hit, managers and executives can shift the company mindset using a data-driven approach to gain both a financial and a competitive advantage. Corporations from Nokia and Amazon to Tesla and Toyota have experienced the financial benefits of a healthy supply chain risk appetite. Emerging technologies and in-depth analytics create even more instances for the prepared company to see the value of leveraging risk. Risk transparency via analytics helps convert risk into opportunity.
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Author's Biography
Ulf Venne leads the global Center of Excellence for Everstream Analytics and previously served as regional Head of Sales for EMEA & APAC. Over the last eight years, Ulf has been instrumental in increasing awareness of supply chain risk management. He has authored several articles and white papers on risk and resilience and has been published in numerous books and magazines. Before joining Everstream Analytics, Ulf worked for Huawei as the supply chain operations lead for Germany. Ulf holds a Magister Artium degree in sinology and economics from the Friedrich-Alexander-University of Erlangen-Nürnberg in Germany.
Phaedra Hise is the Director of Content at Everstream Analytics and writes frequently about risk management and supply chain issues. As a journalist she has covered a wide range of business topics for publications including the Wall Street Journal, Fortune, and Forbes magazine. She has published five books on technical and business topics and has worked with the research and content departments of global companies including American Express, Walmart, Air Miles and Pitney Bowes.
Citation
Venne, Ulf and Hise, Phaedra (2022, September 1). Why go hungry? How analytics can turn a risk appetite into a competitive advantage. In the Journal of Supply Chain Management, Logistics and Procurement, Volume 5, Issue 1. https://doi.org/10.69554/NAZU3803.
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