Musings by the Tao Of Risk

New Writing Project

Bimodal Risk Management - A Survival Guide for the Future

I have started my next writing project that presents a risk management approach to help people and organizations cope with the massive technologic change we are facing today. Today we are on the verge of a technologic explosion fueled by artificial intelligence (AI), Internet of Things (IoT), deep learning, Big Data,  technology robots, and other disruptive technologies.  These disruptivie technologies are rapidly and dramatically altering the world we live in; pushing the pace of technological evolution to warp speed. 

Jack Jones Writes Forward for Cultural Calamity

A BIG THANKS to Jack Jones for writing the forward for my new book Cultural Calamity: Culture Driven Risk Management Disasters and How to Avoid Them.  

One of the most important factors in successful risk management is organizational culture.  Unfortunately, few organizations take the risk management aspects of their culture seriously or even know how to address them when there are concerns.  There are a number of factors that drive this, including:

Quantitative Versus Qualitative Risk Impact

Qualitative measures are highly influenced by someone's position and past experience, so something considered "high" to someone can be perceived as low or totally unimportant to the next person. Conversely, quantitative measures are explicit and not open to interpretation. I see risks logs that list the impact as “major,” “significant,” “substantial,” etc. There is no universally accepted definition of “significant” so one person’s “significant” may seem trivial to others. Without quantitative risk impact there is no way for an organization to understand their total risk exposure and whether they are within the risk tolerance levels established by the organizational risk policy. To effectively mitigate risk, its impact to the project must be quantitatively documented so treatment activities can be measured and tracked. It makes no sense to spend $50,000 treating a risk event that represents $10,000 in budget impact. Quantitative risk impact is a frequent topic of debate with pundits who argue that the uncertainty of risk makes it impossible to quantitatively measure.