Risk and Resilience
The Floor Beneath Your Risk Scale
Every risk scoring instrument has a probability floor. Enterprise-ending events live below it, so the risks that destroy organisations cannot be recorded at all.
Professional knowledge and strategic perspectives across strategy, projects, operations, engineering, transformation and business performance.
3 articles found
Every risk scoring instrument has a probability floor. Enterprise-ending events live below it, so the risks that destroy organisations cannot be recorded at all.
Why leaders should separate technical, market, execution and systemic uncertainty instead of compressing every exposure into a single risk score.
Multiplying probability by impact is an expected-value calculation used as a ranking rule. It is correct only for an enterprise indifferent to variance.