Risk Quantification Using EMV Analysis - A Strategic Case of Ready Mix Concrete Plants
Ready Mix Concrete (RMC) industry in India is continuously
growing. This industry is exposed to risks from internal as well
as external sources. It is important to address these risks, so that
industry shall gain credibility and confidence of the customers,
and shall have expected profit margins. Proposed paper presents
a risk quantification approach for risks in RMC plants in India,
using Expected Monetary Value (EMV) analysis. It is developed
using guidelines available in literature in the area of risk
management. It is a simple but effective approach for
quantification of risks and it shall help to achieve the objectives
of RMC business in terms of cost of production and supply of
RMC. Once the risks are quantified, quantitative assessment can
be done further to decide upon the appropriate response strategies
to be adopted to treat the risk related issues in effective way. This
approach is checked for practicability in RMC organizations.
Keywords: RMC, Risk quantification, EMV Analysis, Response
strategies
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