Risk Measurement • 265
• A variety of existing and new measures are emerging to help manage
supply chain risk, including value- at- risk, time- to- recovery, and risk
exposure indexes.
• Various KPIs will emerge that support a company’s risk management
eorts, including forecast accuracy, inventory accuracy, the perfect
order, concept- to- customer cycle time, order- to- cash cycle time, and
return on assets. An underlying commonality linking these mea-
sures is that they are superordinate, which means they are higher in
class, rank, or status compared with other measures.
ENDNOTES
1. Bialik, Carl. “Will is Bridge Fall? It’s Hard to Say.” e Wall Street Journal, June1–2,
2013: A2.
2. Sull, D., and K. Eisenhardt. “Simple Rules for a Complex World.” Harvard Business
Review, 90, 9 (2012): 69–74.
3. Adapted from Dittmann, J. Paul. “Managing Risks in the Global Supply Chain.” www.
scmr.com/article/managing_risks_in_the_global_supply_chain
4. Accessed from http://www.prsgroup.com/ ICRG_Methodology.aspx.
5. For a PowerPoint presentation of total cost system, send a request to [email protected].
6. Cowman, K. “Material Costs.” Materials Management and Distribution, 49, 7
(September 2004): 73.
7. Accessed from http://www.businessdictionary.com/ denition/ value- at- risk- VAR.html.
8. Accessed from http://www.prweb.com/ releases/2012/3/prweb9259939.htm,
March8, 2012.
9. Shaw, Tim. “In Search of the Perfect Order.” Accessed from https://www.teradata.
com/ article.aspx?id=1646.
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