Think Risk

9 To manage risk is to balance the positive and the negative

DOI: 10.4324/9781003329220-12

Learning Objectives

After reading this chapter, you will develop further knowledge on aspects of:

• How risk management and performance management relate to one another
• The importance of balancing the potential for both positive and negative outcomes

Let’s briefly remind ourselves of some often-used definitions of risk, as discussed in previous chapters. Many definitions reference some future activity. Risk is then related to the consequences of this activity, with consideration of something that humans value. For example, some common definitions include:

• The possibility of an unfortunate occurrence
• The deviation from a reference value and associated ...