Risk Management Article

Ziv Carmon’s picture

By: Ziv Carmon

Counterfeiting is widespread and rapidly expanding. In 2015, the value of fake and pirated products globally was estimated at $1.7 trillion, equivalent to the GDP of Canada. The scope of this phenomenon is vast. In both developing and developed countries, counterfeiting affects many sectors, including apparel, electronics, beverages, food, pharmaceuticals, tobacco, and even vehicle and airplane parts and heavy machinery.

Companies actively try to fight the trade. They seek damages for lost sales from other firms that rip off their designs and conduct major, aggressive outreach campaigns to deter potential buyers from purchasing fake products. They also band together to raise awareness about how counterfeiting funds organized crime and terrorism, and often involves child labor. The Business Action to Stop Counterfeiting and Piracy (BASCP), under the International Chamber of Commerce, for instance, represents 25 companies at intergovernmental forums, formulates best practices in supply chains, as well as funds outreach campaigns such as ibuyreal.org to fight the flood of fakes.

Stephen McCarthy’s picture

By: Stephen McCarthy

In our constantly evolving, data-rich universe, collecting, interpreting, and understanding process data can be tricky. But it is increasingly important if we want to maintain sustainable quality across product development and manufacturing processes. This challenge is particularly evident in the life sciences arena, where pharmaceutical, biotechnology, and medical device manufacturers constantly strive to build quality processes that deliver “fit for purpose” output.

Process data typically come from a collection of diverse sources in varying formats. These data are dynamic, which often means they have a short shelf life. The longer a piece of data sits, the greater chance that it loses relevancy. Data often are also coming from an extremely complex supply chain that may include development or manufacturing partners’ systems and processes.

Ben Brumfield’s picture

By: Ben Brumfield

For decades, Krishan Ahuja tamed jet noise, for which the National Academy of Engineering elected him as a new member this year. Today, Ahuja is an esteemed researcher at the Georgia Institute of Technology, but he got his start more than 50 years ago as an engineering apprentice in Rolls Royce’s aero-engine division, eventually landing in its jet noise research department.

“In those days, if jets went over your house and you were outside, you’d feel like you needed to put your hands over your ears. Not today,” says Ahuja, who is a Regents Researcher at the Georgia Tech Research Institute (GTRI) and Regents Professor in Georgia Tech’s Daniel Guggenheim School of Aerospace Engineering.


Cyclists watching a jet soar overhead, circa 1960s. Credit: National Archives, Records of the Environmental Protection Agency.

Gabriel Hawawini’s picture

By: Gabriel Hawawini

Given the recent, renewed intensification of the shareholder vs. stakeholder debate, the concept of value creation has become more ambiguous. On whose behalf should organizations generate value? For owners, employees, upstream and downstream partners, or local communities immediately affected by organizational activities?

Both shareholders and stakeholders have solid claims. Financial managers are understandably fixated on share price as an index of market value. A stubbornly slumping share price means the loss of real wealth for the firm’s owners, and less ability to attract capital to fund the firm’s activities. Without some form of equity capital, a company cannot survive.

At the same time, the increasingly urgent global war for talent raises the stakes for companies that pursue narrow financial objectives at the expense of employees. Further, customers and civil society groups have a louder voice than in the past, thanks to social media and other online tools enabling the far-flung masses to mobilize quickly and effectively.

Barnaby Lewis’s picture

By: Barnaby Lewis

Put in the terms of this article’s title, most of us would run a mile, whatever the proposition. But the popularity of online reviews, and the trust we place in persons unknown when making major decisions about where to stay, what to eat, and how to get the most from a trip, tells a different story.

Online communities have always been a place where people connect with peers: people like us, sharing something in common. Accessible anywhere and generally free to participate, it’s little wonder that news groups, forums, and chat rooms flourished from the beginning of the internet and prepared the ground for the late 2000’s social media explosion.

It’s hard to imagine a world without these connections. They’ve become part of the fabric of our daily lives. They’ve changed not only the way we socialize and define our friends, but also our relationship to information and how we form, and express, our opinions. They’ve also influenced the way we make our vacationing decisions; many of us now move from idea through research to booking entirely on screen.

Rob Matheson’s picture

By: Rob Matheson

In the Iron Man movies, Tony Stark uses a holographic computer to project 3D data into thin air, manipulate them with his hands, and find fixes to his superhero troubles. In the same vein, researchers from MIT and Brown University have now developed a system for interactive data analytics that runs on touchscreens and lets everyone—not just billionaire tech geniuses—tackle real-world issues.

For years, the researchers have been developing an interactive data-science system called Northstar, which runs in the cloud but has an interface that supports any touchscreen device, including smartphones and large interactive whiteboards. Users feed the system datasets, and manipulate, combine, and extract features on a user-friendly interface, using their fingers or a digital pen, to uncover trends and patterns.

Stephanie McArdle’s default image

By: Stephanie McArdle

The FDA has announced an end to the alternative summary reporting (ASR) program for medical device manufacturers and will make the data publicly accessible.

The ASR program originally launched in 2000 when device manufacturers sought an “alternative summary” reporting exemption. ASR permitted medical device manufacturers to send the FDA an accounting of device injuries and malfunctions on a periodic basis (e.g., quarterly or annually) in lieu of fulfilling their standard public reporting obligations. The ASR program actually ended in 2017, but evidence shows that device exemptions were still accepted by the FDA.

Knowledge at Wharton’s picture

By: Knowledge at Wharton

For decades, relatively easy access to space and the big profits to go with it have dangled elusively just over the horizon. With a little more R&D money and a few more advances in the technology, the thinking went, space would be ours.

Are we there yet? More than a few signs are pointing in the direction of a robust, varied space age of viable commercialization—as well as more audacious goals than we’ve seen in generations.

On the practical side, advances in reusable rockets, lowered per-launch costs, and miniaturization of satellites are opening up business opportunities well beyond aerospace and defense, and into IT hardware and telecom, according to Morgan Stanley. The global space industry is expected to generate revenue of $1.1 trillion or more in 2040, up from the current $350 billion, according to a recent report by the firm.

On the dream side, Amazon founder Jeff Bezos recently outlined a long-term vision for putting a trillion people in space colonies with one small step coming soon: an infrastructure starting with lunar lander Blue Moon. “We are going to build a road to space,” Bezos said at a May unveiling of his plans, “and then amazing things will happen.”

Multiple Authors
By: Stephen Rice, Scott Winter

As driverless cars become more capable and common, they will change people’s travel habits not only around their own communities but across much larger distances. Our research has revealed just how much people’s travel preferences could shift, and found a new potential challenge to the airline industry.

Imagine someone who lives in Atlanta and needs to travel to Washington, D.C., for business. This is about a 10-hour drive. A flight takes about two hours, assuming no delays. Add to that the drive to the airport, checking in, the security line, and waiting at the gate. Upon arrival in D.C., it may take another 30 minutes to pick up any checked bags and find a rental car—and even more time to drive to the specific destination. The average person would estimate a total travel time of four to five hours. Most people would choose to fly instead of driving themselves.

Multiple Authors
By: Romesh Saigal, Abdullah AlShelahi

Soon after the Great Recession, the U.S. stock markets plunged—and rebounded within 36 minutes. The Dow Jones Industrial Average dropped more than 9 percent, losing more than 1,000 points before suddenly recovering.

This May 6, 2010, event was the first recorded “flash crash.” Although it didn’t have long-term effects, it raised concerns among investors about the stability of the stock market.

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