Tagged: risk

risk management cycle

Managing Risk or managing risks?

There are many risk management methodologies in existence but it is not uncommon to come across large firms still following today simplistic, dysfunctional or flawed practices, in particular around operational risk management.

The main issue with many of those approaches is that they are plagued by a fundamental theoretical issue, which goes far beyond semantics: There is an abyss between managing “Risk” (broadly defined as “the impact of uncertainty on objectives”) and managing “risks” (events or scenarios that might have an undesirable outcome).