Operations Pose Embedded Risks to the Enterprise

The following sections are included:Fire at the Plant — Hazard as a Trigger for Operational RiskDamage Assessment — Seeking Disconfirming InformationPhilips and the Cell Phone Industry — Embedded Operational RisksNokia Corporation — BackgroundEricsson Corporation — BackgroundThe Nokia Response — Reacting to the RiskThe Ericsson Response — Risks PersistsThe Bubble Bursts — Risks Impact the IndustryPost Bubble: Ericsson and Nokia — Different Risk Treatments, Different FatesSupply Chain Risk Require Dynamic CapabilitiesRecovery Efforts Are Critical to Preventing Persistent RisksCase ReviewTimeline Corporate Activity/CapabilityRisk Management LessonsProactive information gatheringInvestments in information systemsData collection and creationDevelopment of risk metricsAuthority of individuals to respond to informationMeasurement of the competitive landscapeIdentification of alternativesFocus on preventing persistence and contagion in riskProtection of the firm's profitsFailures in risk management result in the transfer of assets between firmsCase Questions