Explain the major differences between value-at-risk and miss-the-target risk. Give examples of each.

1. Explain the major differences between value-at-risk and miss-the-target risk. Give
examples of each?
With the advent of lean techniques and just in time methodology, supply chain are becoming
much more efficient today but at the same time they are becoming more vulnerable to man-made
and other natural catastrophe.
Despite the importance of the topic supply chain risks, there is not enough literature on the risk
quantification especially for disruptive events. As per the research (Ravindran, Bilsel, Wadhwa,
& Yang, 2010), Supply chain risks are further categorized into 2 types of risks:
 Value-at-risk (VaR) risks
 Miss-the-target (MtT) risks
VaR risks basically refer to the...