Operational Risk
1277Operational RiskImagine.a.company.that.sells.some.of.the.hottest.products.on.the.planet.with.just.a.few.products.representing.a.disproportionate.share.of.revenues..Imagine. further. that. this. company. has. relied. on. a. single. Chinese. supplier.and.location.to.build.these.products..And.imagine.even.further.that.this.Chinese.supplier.is.secretive,.ofen.showing.an.unwillingness.to.share.information.publicly,.particularly.about.labor.problems..If.this.scenario.sounds.operationally.risky.(and.strategically.risky.as.well),.you.just.fgured.out.why.Apple.has.made.a.decision.to.diversify.its.supplier.base.by.expanding.its.outsourcing.to.a.second.supplier.located.in.Taiwan.Tis.chapter.will.discuss.the.many.potential.operational.failures.through.the.prism.of.the.four.pillars.of.supply.chain.risk—supply.risk,.demand.risk,.process.risk,.and.environmental.risk..We.will.profle.operational.risks.that.happen.every.day.in.these.four.areas..We’ll.also.discuss.these.risks.in.the.context.of.two.basic.operation.horizons.and.present.a.program.that.traditionally.has.been.utilized.to.mitigate.and.manage.operational.risks.OpeRatiOnal RiSkSBy. far,. a. disproportionate. set. of. supply. […]
