The Power of Resilience: How the Best Companies Manage the Unexpected

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MIT Press, Sep 15, 2015 - Business & Economics - 488 pages

How the best companies prepare for and manage modern vulnerabilities—from cybersecurity risks to climate change: new tools, processes and organizations for developing corporate resilience.

A catastrophic earthquake is followed by a tsunami that inundates the coastline, and around the globe manufacturing comes to a standstill. State-of-the-art passenger jets are grounded because of a malfunctioning part. A strike halts shipments through a major port. A new digital device decimates the sales of other brands and sends established firms to the brink of bankruptcy. The interconnectedness of the global economy today means that unexpected events in one corner of the globe can ripple through the world's supply chain and affect customers everywhere. In this book, Yossi Sheffi shows why modern vulnerabilities call for innovative processes and tools for creating and embedding corporate resilience and risk management. Sheffi offers fascinating case studies that illustrate how companies have prepared for, coped with, and come out stronger following disruption—from the actions of Intel after the 2011 Japanese tsunami to the disruption in the “money supply chain” caused by the 2008 financial crisis.

Sheffi, author of the widely read The Resilient Enterprise, focuses here on deep tier risks as well as corporate responsibility, cybersecurity, long-term disruptions, business continuity planning, emergency operations centers, detection, and systemic disruptions. Supply chain risk management, Sheffi shows, is a balancing act between taking on the risks involved in new products, new markets, and new processes—all crucial for growth—and the resilience created by advanced risk management.

 

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Contents

1 A Quake Breaks a Supply Chain
1
2 A Classification of Catastrophes
27
3 Reducing the WhiteSpace
53
4 Crisis Response
79
5 The Financial Crisis and the Money Supply Chain
105
6 An Ounce of Preparation
129
7 Caveat Emptor
159
8 Detecting Disruption
189
10 Planning for Scarcity and Price Shocks
239
11 Shifting Ethics Rising Bars
265
12 Adapting to LongTerm Change
295
13 For Want of a Nail
319
14 Why Resilience?
347
Notes
371
Table of Thanks
439
Index
445

9 Securing the Information Supply Chain
215

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About the author (2015)

Yossi Sheffi is Elisha Gray II Professor of Engineering Systems at MIT and Director of the MIT Center for Transportation and Logistics. He has worked with leading manufacturers and logistics service providers around the world on operations and strategy issues and is the author of three award-winning books: The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage, Logistics Clusters: Delivering Value and Driving Growth, and The Power of Resilience: How the Best Companies Manage the Unexpected, all published by the MIT Press.

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