CHAPTER 2: THREATS AND VULNERABILITIES
Risk is an inevitable part of life. Every time you do something in which the outcome is uncertain, you take a risk, whether it’s something simple like crossing the road, or something complex like undergoing surgery. Risk is a function of uncertainty – without uncertainty, there is no risk.
Different business fields approach risk in different ways, but the general principles remain the same: the likelihood of an adverse event is mapped against the effect that event would have were it to occur. If the outcome is severe and the likelihood high enough, then it is sensible to take steps to protect against it – usually by reducing the damage caused by the outcome, or by reducing the likelihood that it will occur ...
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