A USD 400mn Lesson in Risk Management
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On March 17, 2015, I took on a risk management consulting engagement for the CEO of a Fortune 500 corporation. I was hired to help manage an internal process improvement project that aimed to reduce the company’s “cost of excessive inventory,” which was running at a rate of $1.2bn per quarter. The project was going to involve the implementation of a new inventory optimization software system. I thought it would be relatively easy to work with this corporation, given that they had no significant invent
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This is the second time I’ve gone through this process. The first time was after the terrorist attack on 9/11. In that case, I was able to prevent a disaster with a little over 30 minutes of strategic intervention. That was it. No other event, no other circumstance ever made me feel as vulnerable to the possibility of catastrophe. Now the situation is different. This is a case where there is no other catastrophe looming, but we are still in an environment where one would be foolish to
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I recently received the most important job in the industry. It’s an instruction to write a 12000-word case study report on a USD 400mn project that failed due to high risks and a lack of appropriate risk management. As someone who has a deep understanding of these issues, I am excited to dive into this assignment. The assignment asks for a first-person, conversational, and human perspective on the project’s risks and management. Firstly, I’m going to start by discussing my own personal experience
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My assignment was to write a case study for a senior executive in a large technology company. The company’s business model is complex, with multiple functional teams, and global operations. The task was to analyze the company’s financial performance, and specifically, to explore the impact of several risks — some major, some minor. Before starting, I gathered background information about the company, including its growth trajectory, market share, revenue, and financial position. This was necessary for me to identify the company’s weaknesses and strengths. Then, I spent time understanding
Porters Model Analysis
At a top-tier technology company, my team and I undertook a project with a USD 400mn risk score. We worked hard and met deadlines, and the project turned out to be a hit. Our client was delighted, and the team was the top performers. However, later, when we received the final delivery, I noticed some unexpected costs. In the original business plan, I had assumed that we would save a little money on transportation, which was just one of the components that were to be measured. But, as it
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I used to manage risks in real estate businesses for well over 2 decades as the Head of the Investments Division. But after learning how to manage risks, I realized that the way the industry is going, a few months to a few years from now, I could not afford a single single risk. Home It was a shocking realization. At that time, I used to do risk management for an AAA class rated bank in a big city. The bank was doing a huge portfolio of loans. They were taking high credit risks and
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I used to teach and write my case study papers. And I’ve always used my own experiences to inspire them. This was no exception, as I recently encountered an event that gave me an unforgettable lesson in risk management, a real-world, life-or-death lesson for anyone who has ever wanted to write a case study. My case study, a research report I wrote for one of the top law firms in the country, is a 25-page narrative piece, about a client whose high-stakes legal