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2023 | OriginalPaper | Chapter

6. Data-Driven Risk Management

Author : Christian Mandl

Published in: Procurement Analytics

Publisher: Springer Nature Switzerland

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Abstract

The world is increasingly becoming volatile and uncertain. In the procurement context, this gets obvious through severe supply disruptions for semiconductors and other basic purchase materials as well as through unforeseeable upward commodity price movements in the early 2020s at metal, energy and agricultural markets. In this chapter, we provide guidance on how to measure the degree of procurement risk that a company is facing and present analytical approaches to reduce risk. Doing so, we distinguish between three major exogenous risk factors that affect procurement performance: supply disruption risk, commodity price risk and exchange rate risk.

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previous chapter Data-Driven Inventory Management
next chapter Conclusion
Footnotes
2
Standardized measure based on the standard deviation of daily spot price returns. For the exact mathematical definition, we refer to [14].
 
3
Technical analysis refers to a chart analysis based on the historical price evolution.
 
4
Fundamental analysis uses additional data (features) to explain price movements.
 
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Metadata
Title
Data-Driven Risk Management
Author
Christian Mandl
Copyright Year
2023
Book
Procurement Analytics

Print ISBN: 978-3-031-43280-4

Electronic ISBN: 978-3-031-43281-1

Copyright Year: 2023

DOI
https://doi.org/10.1007/978-3-031-43281-1_6