Absolute Risk

June 12, 2018 Posted by 0 thoughts on “Absolute Risk”
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Absolute risk measure is a measurement that reflects intrinsic risk within a clearly defined supply chain based on a specific set of inputs and criteria. It is an aggregate of all measurements of risk taken together with greater emphasis applied to critical elements.  If any element changes, a new absolute risk measure is created for the updated set of inputs.The score is not comparable to the previous score, and putting two scores side by side will not yield a meaningful comparison.  However the score in and of itself does give a meaningful indication of the degree of risk in the supply chain.

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