Risk Management Math
Risk management is all about getting the math right.
If there is one universal truth, it is that bad things can happen. With risk management, the only worry is getting the math wrong. Risk management is forecasting events based on mathematical models.
- If you are going to manage risks successfully, you have to make sure that your assumptions and quantifications are the same across all of your risks.
- Use more than one way of analyzing and quantifying risk events.
- Use past event occurrences as models for quantification.
The real risk to your project is not in the event that something bad happens; it is only in getting the math wrong. An example of a math example would include rating a risk for probably and impact to determine a quantifiable score for the risk.
Do you agree or disagree with this premise? Take a position on this approach to risk. min 200 wrd, cited within