Foundations and Trends® in Technology, Information and Operations Management > Vol 15 > Issue 1–2

The Interface of Finance, Operations, and Risk Management

Volodymyr Babich, McDonough School of Business, Georgetown University, USA, vob2@georgetown.edu , John R. Birge, University of Chicago Booth School of Business, USA, john.birge@chicagobooth.edu
 
Suggested Citation
Volodymyr Babich and John R. Birge (2021), "The Interface of Finance, Operations, and Risk Management", Foundations and Trends® in Technology, Information and Operations Management: Vol. 15: No. 1–2, pp 1-203. http://dx.doi.org/10.1561/0200000101

Publication Date: 15 Jun 2021
© 2021 Volodymyr Babich and John R. Birge
 
Subjects
Capacity Planning,  Contracting in Supply Chains,  Health Care,  Queuing Networks,  Supply Chain Management,  Multi-location inventory theory,  Asset Pricing,  Corporate finance,  Derivatives,  Financial markets,  Stochastic Systems
 

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In this article:
1. Introduction
2. The Blind Men and a Firm Parable
3. A Brief Finance Primer for OM Researchers
4. A Brief OM Primer for Finance Researchers
5. Intersection Between OM and Finance and Promising Research Directions
6. How to Write, Publish, and Referee iFORM Papers
Acknowledgments
Appendix
References

Abstract

In this work we define the characteristics of the interface of finance, operations, and risk management (iFORM) research and provide examples of iFORM research questions. We illustrate why this is an interesting area and discuss where the two disciplines overlap in a meaningful way. Our goal is to lower the entry cost for new researchers by providing primers on (1) key finance results and papers that OM researchers endeavoring to enter into this field must know; (2) key OM results and papers that finance researchers endeavoring to enter into this field must know. Furthermore, we offer our perspective on resources to help readers to accelerate their iFORM research and on how to write, publish, and referee iFORM papers.

DOI:10.1561/0200000101
ISBN: 978-1-68083-796-4
203 pp. $99.00
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ISBN: 978-1-68083-797-1
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Table of contents:
1. Introduction
2. The Blind Men and a Firm Parable
3. A Brief Finance Primer for OM Researchers
4. A Brief OM Primer for Finance Researchers
5. Intersection Between OM and Finance and Promising Research Directions
6. How to Write, Publish, and Referee iFORM Papers
Acknowledgments
Appendix
References

The Interface of Finance, Operations, and Risk Management

This monograph, as entitled, defines and describes the research field at the interface of Finance, Operations, and Risk Management (iFORM), provides examples where operations and finance overlap in meaningful ways, outlines promising research directions, and reduces the entry cost for anyone who would like to explore this new and exciting research field. The intended audience for this article includes both PhD students in operations management (OM), finance, and economics, who are looking for dissertation topics, and experienced researchers looking for novel applications of their expertise.

The following outlines the rest of this article. Chapter 2 compares perspectives of finance and operations on the same topic: the firm. This motivates the key questions in finance, which is presented in the finance primer in chapter 3 and key questions in OM, which is presented in the OM primer in chapter 4. Having discussed key ideas from these disciplines separately, chapter 5 examines how OM and finance intersect in meaningful ways and suggest several promising research directions. Chapter 6 presents a “dos and don'ts" list for publishing and reviewing iFORM papers.

 
TOM-101