Mastering Risk Management

SUMMARY

One of the big problems of risk management is that we do not fully know the risks we face now or in the future, but we must act as if we do. If the future were certain, there would be no probabilities, only certain outcomes. The best that can be done is to try to make the future a little more certain and reduce the chance of negative outcomes to acceptable levels.

There is always the possibility that something will go wrong, whether through a failure in a process, human failures or simply because something unexpected happens in the external environment. Of all these, the most unpredictable, and the ones most likely to cause serious problems, are human failures and external events. That does not mean that these unpredictable factors are ...