For CFOs and supply-chain leaders

This page is the buyer-facing view — the headline numbers, what the analysis produces, what an engagement looks like. No code, no implementation detail.

If you're an analyst evaluating whether the methodology is real, see the Methods page. For the broader market argument, see the Economics page.

On a synthetic dataset of 200 firms responding to a Q1 2020-magnitude disruption, where the structural truth is knowable in advance, here is what naive analysis produces versus what a structural causal correction recovers:

Naive analysis says
$1.32
Net benefit per dollar of buffer investment, as reported by a regression that doesn't account for the latent confounders.
SCM says
$0.80
Structural net benefit after accounting for the back-door confounders (firm-level resilience posture and market-state-dependent decision making).
Truth (known here)
$0.80
The actual structural effect in the data-generating process. Naive analysis overstated buffer's value by 65%; the SCM recovers truth within sampling noise.

For a $5B-revenue firm carrying $30M in annual buffer-inventory costs, the difference between "$1.32 per dollar of NetBenefit" and "$0.80 per dollar" is the difference between a 32% positive ROI on the buffer program and a flat-to-modest one. Different boards make different decisions on those two numbers — keep funding aggressively versus rationalize.

What this is, in one sentence

The same structural causal modeling we apply to marketing mix applies to resilience investment: name the latent confounders, parameterize their assumed strength, run Pearl's three rungs (observation, intervention, counterfactual). The answer is a defensible range, not a number.

Most sophisticated supply-chain teams already run discrete-event simulations to evaluate resilience policies. SimPy or AnyLogic models that re-run history with and without the investment, producing comparison numbers. The output gets attached to the buffer's annual review and the CFO either accepts it or doesn't.

Two structural problems with simulation-only analysis become visible once you ask the counterfactual question precisely:

The latents aren't in the simulator. Firms that invested in buffer also tended to invest in better forecasting, better supplier relationships, and other resilience measures the simulator doesn't fully capture. Re-running the disruption with the buffer turned off doesn't undo the fact that the firm was the kind of firm that would have invested in the buffer. The simulation answers a hypothetical that doesn't quite match the world. The counterfactual it produces is biased — typically toward overstating the buffer's value, because the unsimulated co-investments get implicitly attributed to the buffer.

The simulator doesn't model the noise. Counterfactual reasoning — "given that we observed our actual outcomes, what would those outcomes have been if we'd done something different" — requires inverting the noise terms from observed evidence. Most simulators don't do this. They run forward under a different policy and report the average outcome under that policy, which is not the same answer.

The structural causal model handles both: explicit confounders get parameterized and adjusted; the twin-network procedure (abduct → action → predict) inverts the noise and produces the right counterfactual. the Methods page walks through the math.

Three deliverables, designed for a board presentation, defensible at the CFO level, with the assumption strengths visible.

Per-investment causal attribution

For each resilience investment (buffer, multi-sourcing, geographic diversification, etc.), the structural net benefit corrected for latent confounders. Reports the gap against naive analysis: where the simulation or peer comparison overstated the value, where it understated, and the range of estimates across plausible assumption strengths.

Counterfactual answers per disruption window

Given the disruption your firm actually experienced and the investments you actually made, the counterfactual NetBenefit if you'd reduced or removed each investment. The CFO's question: "what would have happened if we hadn't" — answered specifically for your firm, your disruption, your numbers.

Sensitivity-analyzed funding decisions

A go-forward funding recommendation paired with explicit sensitivity to the assumption strengths. Drag a slider from "no confounder" to "strong confounder" and watch the funding recommendation move. The recommendation that holds across the range is the one the team can defend. The one that moves a lot is the one to keep arguing about — and the one whose underlying confounder you should invest in measuring.

Three to four weeks. The first two are configuration; the third is build; the fourth is delivery. The deliverable is a written audit, an interactive Shiny app the team operates for ongoing analysis, and a quarterly refresh path.

Pricing band

For a single-disruption-window analysis covering 3–6 investments at a mid-market firm (single geography, 2–3 years of operational data, no major data-quality issues), the engagement runs $50–90K depending on data complexity and how many specific scenarios need modeling. Multi-disruption analyses (COVID + Ever Given + a regional disruption, say) or multi-geography firms run $90–180K over five to six weeks.

Quarterly refreshes — re-running the audit against new disruption events, updating priors as new data accumulates — run $20–40K per quarter as a managed-service annuity.

What you provide

Your existing simulation output (where you have it) or the operational data the simulation would consume. The investment-by-investment financial summary your finance team already produces. A short description of how decisions were made — which investments were greenlit, which were rejected, and what data drove those calls. The rest is on us.

What you get

  • The causal audit — your investment portfolio with the back-door confounders accounted for, ready for a board-level conversation about funding decisions.
  • The interactive Shiny app — your team uses it for ongoing analysis, with sensitivity sliders, scenario planning, and downloadable artifacts. Hosted on shinyapps.io or your infrastructure.
  • The audit report — written deliverable defensible at the CFO level, distinguishing what's robust from what's sensitive to the assumptions.
  • The .bayes file — your structural causal model, openable in Bayes Server desktop, auditable by anyone who wants to inspect the assumptions independently.
  • The methodology — documented enough that your team can extend, tune, and explain it without us.

If you're an analyst evaluating whether the methodology is real — or just curious how the structural causal model handles the resilience question — the Methods page covers the SCM structure, the Pearl-ladder reasoning, and the worked example with the synthetic dataset.

Next Step

If your CFO asked what the buffer saved you and you answered with a story, the question worth asking next is whether the story is robust to the latent confounders nobody named.

Email: info@rung3.ai