Fundamentals of Enterprise Risk Management: How Top Companies Assess Risk, Manage Exposures, and Seize Opportunities

By John J. Hampton | Go to book overview

CHAPTER 18
AVOIDING
BUSINESS
DISRUPTION

RISK QUOTE: We made too many wrong mistakes.

—YOGI BERRA, BASEBALL PLAYER

RISK QUOTE: Not to have control over the senses is like sailing in
a rudderless ship, bound to break to pieces on coming in contact
with the very first rock
.

—MAHATMA GANDHI, INDIAN POLITICAL
AND SPIRITUAL LEADER

Supply chains are one of the most important tools for pursuing the upside of risk and avoiding disruption as the downside of risk. We will use some examples of supply chain issues to identify risks in the production and distribution of goods and services. I extend my thanks to Yossi Sheffi, from whose book The Resilient Enterprise (Cambridge, Mass.: The MIT Press, 2005) I have drawn ideas and examples.


Dell Computer

In 2005, Dell employed a build-to-order business model by which customers, on the company Web site, www.dell.com, could design

-215-

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