How New Risk Management Helps Leaders Master Uncertainty

Preface

Many people believe that “risk” only has negative consequences. While this is true with “pure risk,” you will learn that “context risk” addresses the “effects of uncertainty” with potential adverse effects (threats) and potential beneficial effects (opportunities). Every organization experiences both kinds of risk. They manage pure risk with the help of insurance and the placement of “controls” on the operations. Context risk involves the searching of the external and internal environments of the organization for “opportunities and threats.” Context risks are managed with standards, such as COSO ERM:2017 and/or ISO 31000:2018. These copyrighted standards are designed to help an organization’s leader decide “what” they need to do in order ...