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SPEC Seminar, Friday, November 11, 2005, 1:30 p.m.
November 08, 2005
Semiconductor Power Electronics Center Seminar,
Friday, November 11, 2005, 1:30 p.m.
Partners I, Suite 1250 Centennial Campus
"Asset Management Integrating Risk Management, Heads I Win, Tails I Win"
Professor Gerald B. Sheble, Fellow, IEEE, Professor, Iowa State University
Topic Abstract:
The role of Risk Management is integral with the role of asset management. This work examines the integration of profit maximization techniques to not only maximize the value of the asset, which is Asset Management, but also to minimize the financial impact of losses when the asset is not available or degraded, which is Risk Management. Both techniques rely on the proper valuation of the cash flow based on the impact of the asset to the supply chain, the potential competitive threats, and the flexibility of the customer demand. Asset Management relies on the strategic strengths of the company to leverage the investment of an asset into a profitable cash flow from customer demand. The profit maximization know as Asset Management, when coupled with the loss reducing concepts of Risk Management, provide a complete portfolio optimization of the corporate assets. This portfolio optimization starts as a project portfolio when the asset is first considered as a component to contribute to the corporate profit return when first conceived. The asset is conceived, developed and finally delivered for operational harvesting of the customer demand for the value added capabilities of this asset just as an individual investment vehicle to improve the overall investment portfolio. Not only must the conception, the development and the delivery of the asset be timed with all other projects but the introduction to the customer’s contracting of the asset has to be considered in light of all other product development and operation. The key is to use portfolio management to improve present and future business investments. Thus, corporate management must seek maximum portfolio return for the allowed risk, while seeking portfolio balance, strategic alignment, and optimal resource management of the capital available for product introduction and operation.
Friday, November 11, 2005, 1:30 p.m.
Partners I, Suite 1250 Centennial Campus
"Asset Management Integrating Risk Management, Heads I Win, Tails I Win"
Professor Gerald B. Sheble, Fellow, IEEE, Professor, Iowa State University
Topic Abstract:
The role of Risk Management is integral with the role of asset management. This work examines the integration of profit maximization techniques to not only maximize the value of the asset, which is Asset Management, but also to minimize the financial impact of losses when the asset is not available or degraded, which is Risk Management. Both techniques rely on the proper valuation of the cash flow based on the impact of the asset to the supply chain, the potential competitive threats, and the flexibility of the customer demand. Asset Management relies on the strategic strengths of the company to leverage the investment of an asset into a profitable cash flow from customer demand. The profit maximization know as Asset Management, when coupled with the loss reducing concepts of Risk Management, provide a complete portfolio optimization of the corporate assets. This portfolio optimization starts as a project portfolio when the asset is first considered as a component to contribute to the corporate profit return when first conceived. The asset is conceived, developed and finally delivered for operational harvesting of the customer demand for the value added capabilities of this asset just as an individual investment vehicle to improve the overall investment portfolio. Not only must the conception, the development and the delivery of the asset be timed with all other projects but the introduction to the customer’s contracting of the asset has to be considered in light of all other product development and operation. The key is to use portfolio management to improve present and future business investments. Thus, corporate management must seek maximum portfolio return for the allowed risk, while seeking portfolio balance, strategic alignment, and optimal resource management of the capital available for product introduction and operation.
