All future events come with some degree of uncertainty. When the uncertainty affects the outcome of the event in a negative manner, it is considered a risk. The ability to quantify the likelihood of the risk’s occurrence with the monetary value of its impact is a major goal of Risk Management (RM).
Learning Objectives
All future events come with some degree of uncertainty. When the uncertainty affects the outcome of the event in a negative manner, it is considered a risk. The ability to quantify the likelihood of the risk’s occurrence with the monetary value of its impact is a major goal of Risk Management (RM).
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"Impartial observers from other planets would consider ours an utterly bizarre enclave if it were populated by birds, defined as flying animals, that nevertheless rarely or never actually flew. They would also be perplexed if they encountered in our seas, lakes, rivers and ponds, creatures defined as swimmers that never did any swimming. But they would be even more surprised to encounter a species defined as a thinking animal if, in fact, the creature very rarely indulged in actual thinking."