Engineering a safer world
Innovations in software and technology are creating increasingly complex systems: cars that park themselves; medical devices that automatically deliver drugs; and smartphones with the computing power...
View ArticleStudy: At most a third of us show a consistent approach to financial risk
Take a moment to consider some of the financial choices you’ve made in recent years. Do you have a consistent approach to your money, either by playing it safe or having a willingness to take risks? Or...
View ArticleNew insight into how people choose insurance plans
Economists often talk about “moral hazard,” the idea that people’s behavior changes in the presence of insurance. In finance, for instance, investors may take more risks if they know they will be...
View ArticlePruning the power grid
Each summer, power grids are pushed to their limits, as homes and offices crank up the air conditioning in response to rising temperatures. A single failure in the system — such as a downed power line...
View ArticleMIT Forum for Supply Chain Innovation releases risk report
The MIT Forum for Supply Chain Innovation has released a report in conjunction with PricewaterhouseCoopers (PwC), titled, “Making the right risk decisions to strengthen operations performance,” based...
View ArticleRethinking investment risk
Financial innovation is supposed to reduce risk — in theory, at least. Yes, new financial instruments based on the housing market helped cause the financial crisis of 2008. But in the abstract, those...
View ArticleHidden risk in supply chains
A new MIT study on supply-chain risk shows no correlation between the total amount a manufacturer spends with a supplier and the profit loss it would incur if that supply were suddenly interrupted....
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