article thumbnail

Why Quants Should Manage Your Supply Chain Risk

Harvard Business Review

When ash clouds from the Icelandic volcano darkened the skies over Europe, planes were grounded, interrupting business travel and disrupting air freight. Generally, the experts trying to address this issue take for granted that risk is a cost managers want to avoid and portray risk management as an attempt to avoid this potential cost.

article thumbnail

4 Assumptions About Risk You Shouldn’t Be Making

Harvard Business Review

“Two roads diverged in a wood, and I—I took the one less traveled by, and that has made all the difference.” Most readers assume Frost’s poem is hopeful, describing the value of the rugged individualism that has long served as an American hallmark. That assumes, however, that the base case is zero.