The type of option discussed here is not a financial option but rather a so-called real option or investment that gives crisis managers a tool or capability that they can use, at their choosing, in case of a disruption. An option represents the right, but not the obligation, to take a certain action. One role of risk managers is to prepare options for crisis managers and their teams. I guarantee that with 14,000 suppliers, at least one of them is not performing well today,” said Tom Linton, chief procurement and supply chain officer at Flextronics. However, the probability that something significant will happen somewhere, sometime during a year and disrupt a multinational company with dozens of facilities and many thousands of suppliers across the globe is not small at all. The likelihood that a specific high-impact disruption will take place at a particular time at a given location is very small.
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