Why go hungry? How analytics can turn a risk appetite into a competitive advantage

Ulf Venne and Phaedra Hise
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Ulf Venne: Leader, Center of Excellence, Everstream Analytics, Germany
Phaedra Hise: Content Marketing Director, Everstream Analytics, USA

Journal of Supply Chain Management, Logistics and Procurement, 2022, vol. 5, issue 1, 77-83

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.

Keywords: risk management; disruption; analytics; technology; supply chain (search for similar items in EconPapers)
JEL-codes: L23 M11 (search for similar items in EconPapers)
Date: 2022
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