Governing risk & how to be at ease with it

No one likes being exposed to danger, but avoiding all risk is impossible. In this post we go through some concepts that should make the life of those involved in handling risk easier. Risk ownership, appetite, tolerance, and more.

Two approaches to managing risk

Among the first decisions a risk practitioner faces is whether to express risk quantitatively or qualitatively. We consider this framing a red herring. The meaningful distinction is not between methods, but between outcomes.

What is risk, and why bother managing it?

Most of us understand risk as something ominous: a danger, a threat, something that could go wrong. Yet we celebrate risk-taking as bravery. If we are rational beings, however, how can we hold both of these conflicting beliefs simultaneously?