
260 • Supply Chain Risk Management: An Emerging Discipline
EMERGING SUPPLY CHAIN RISK METRICS
We are witnessing a combination of existing measures as well as the devel-
opment of entirely new measures being applied to the risk management
arena. e following describes some of these risk- related measures.
Value at Risk
A metric that will increasingly have corporate- level visibility as a risk met-
ric is value at risk (VaR), a metric that is used extensively by the nancial
community to evaluate nancial investments. From a nancial perspec-
tive, VaR represents the largest loss likely to be suered on a portfolio
position over a holding period (