Risk and uncertainty

This category contains 65 posts

The (probably non-) risk management process

If you want a process for managing risk, then ISO 31000, “Risk management — Guidelines” is probably not going to help you. I’ve been looking at ISO 31000, because although I’ve been reading a lot of blogs and articles by individual people about risk, I also felt it was important to understand any “official” guidance … Continue reading

Sharing and transferring risk

When suggesting how we might deal with risk in a project or an enterprise, one of the common options that’s suggested is that we “transfer” the risk. (Other options include to accept it, reduce it, or avoid it.) And a common example of what it means to transfer the risk is taking out insurance. Then … Continue reading

Visualising uncertainty with R

I came across an article the other day by Martin Davies, explaining how important it is to visualise risk and uncertainty. A couple of weeks ago I wrote about visualising cause and effect. Martin emphasises the value of visualing uncertainty as a probability density curve, which I’ve also discussed before, and he uses the programming … Continue reading

Predicting an uncertain future

I was listening to the Today programme last week, and was struck by an interview between the Business presenter, Dominic O’Connell, and BP’s Chief Economist, Spencer Dale. (It’s around 24 minutes in if you want to listen for yourself.) The economist was talking about BP’s research into demand for oil. Currently we use about 100 … Continue reading

Visualising cause and effect in risk management

The other day I came across an interesting collection of visualistions around risk and uncertainty. It was produced by Nico Lategen as a demonstration, and his example was Brexit. (Clearly a favourite topic for those of us interested in uncertainty.) Initially my interest was around his scale representing sovereignty. This reflects what I’ve written about … Continue reading

Visualising uncertainty with bar charts

Previously I’ve advocated the use of probability distribution curves to describe uncertainty more clearly. It helps us get away from the binary success/fail of traditional risk listing, and instead allows a much wider understanding of the likelihood of different gradations of outcome. For example, not just whether we’ll make our predicted profit, but different degrees … Continue reading

Accepting failure enables rational exits

You’ve probably heard the idea that we should allow people to fail. You’ve probably also heard the phrase “fail fast”, meaning that we should both allow failure and be set up sufficiently to recognise it and recover from it quickly. In both cases I’ve always seen the benefits of accepting failure as allowing us to … Continue reading

Even successful subversion is a sliding scale

A few weeks ago Theresa May talked directly about Russia’s attempts to undermine democracy in the UK. It does this by planting “fake news” in social media, as well as direct cyber attacks and influencing individuals. Yet I also heard a claim on BBC News that one government source said there was no evidence that … Continue reading

Responding to risk involves many actions

When people talk about “managing risk” they often list individual “risks” and then choose an action to deal with each one. However, this approach is often too simple, and misses subtleties. That’s probably because what people call a risk is often an event which is much too narrowly defined, and hence the solution (the action) … Continue reading

What does “take more risk” mean?

Last week I picked up on something from a Norman Marks blog post. But something also caught my attention in the comments below it, which has intrigued me before: the idea that organisations might want to “take more risk”. The idea that we might be taking “too little risk”, and therefore should “seek to take … Continue reading