Strategy

Risk tolerance

Risk tolerance

One of the most important concepts within risk management is risk tolerance.  Without clearly defining risk tolerance it is virtually impossible to implement good risk management, since we do not know what to measure risk against. Defining risk tolerance means to define how much risk the business can live with.  Risk tolerance is vitally important […]

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Inventory management – Some effects of risk pooling

Inventory management – Some effects of risk pooling

This entry is part 3 of 4 in the series Predictive Analytics

We have thus shown through Monte-Carlo simulations, that the benefits of pooling will increase with the number of locations and that the benefits of risk pooling can be calculated without knowing the closed form of the demand distribution.

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Uncertainty modeling

Uncertainty modeling

This entry is part 2 of 3 in the series What We Do

We know that forecasts based on average values are on average wrong. In addition will deterministic models miss the important uncertainty dimension that gives both the different risks facing the company and the opportunities they bring forth.

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Perception of Risk

Perception of Risk

Google Trends and Google Insights for Search gives us the opportunity to gain information on a subject’s popularity. A paper by Google Inc. and Centers for Disease Control and Prevention (USA) have shown how search queries can be used to estimate the current level of influenza activity in the United States. (Ginsberg, Mohebbi, Patel, Brammer, […]

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Selecting Strategy

Selecting Strategy

This entry is part 2 of 2 in the series Valuation

When there is no uncertainty the maximum return criterion can be used to rank strategies. With uncertainty we have to look for the strategy that maximizes the firms expected utility.

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Valuation as a strategic tool

Valuation as a strategic tool

This entry is part 1 of 2 in the series Valuation

Valuation is something usually done only when selling or buying a company. However it is a versatile tool in assessing issues as risk and strategies both in operations and finance …

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