Consider some of the risks faced by people in different careers. A firefighter, for instance, faces a very different set of risks than someone who works in an office environment. What risks or uncertainties have you personally encountered in your career? How were these risks connected to the field or industry in which you work or worked? The nature of the product or service that an organization offers will also influence the categories of risk it may incur. What are some categories of risk that you think might affect many different types of organizations? What are some types of risks that are industry-specific? Your ability to categorize risks and to understand how particular organizations generate particular risks will be the basis of this week’s Discussion.
Some risks are quantitative (objective), while others are more qualitative (subjective) in nature. Although quantifiable risks are often preferred as they provide certain data to support their impact, frequently leaders must accept qualitative data as risk, by definition, describes uncertainty.
For this Discussion, consider the various risk categories (financial, operational, hazard, regulatory, technical/engineering, etc.) as well as any that are industry-specific.
Briefly describe an organization where you currently work or one with which you are familiar.
Describe the risk categories that you believe most affect that industry or business.
Do you believe that these types of risks are best suited for qualitative or quantitative risk analysis? Explain why, and provide support for your response. If quantitative risk analysis, include which of the quantitative tools you think would work best for that type of risk. If qualitative, explain why you can't use quantitative analysis.