Why Quants Should Manage Your Supply Chain Risk

Harvard Business Review

Let's start by defining what we mean by risk, which is simply the possibility of more than one outcome (of unequal values) to a given future state. The possibility of more than one future outcome can very easily generate a cost in the present. Because the fact that value is not guaranteed in the future lessens value in the present. This reduction in value is present and represents a cost today , not tomorrow.