El Metodo Managing Risks in Value Chains

The ability to organize resource-allocation on the basis of actual need allows a business to become highly flexible, cost efficient and robust against crises. Doing so requires that functionalities and the associated responsibilities are properly defined, delegated to other parties where needed, and checked to ensure that the risks involved remain at an acceptable level. A framework called ‘El Metodo’ is presented that helps organizations do just that. Also, a simple use-case illustrates how ‘El Metodo’ supports the construction of an early-warning system that signals risks that become unacceptably high due to causes elsewhere in the resource chain. Finally, we present an overview of what businesses have to say about this method.