quantitative assessment

Asking Unbiased Risk Assessment Questions

By Carol Williams / August 4, 2022 /

Originally coined by the U.S. Army War College in the early ‘90s, the acronym VUCA, short for volatile, uncertain, complex, and ambiguous, has become a popular term for describing today’s business environment. I agree this oft-repeated mantra could almost be considered cliché, but that doesn’t make it any less true. To make the best decisions…

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Another Baby Step in the Qualitative to Quantitative Risk Assessment Journey

By Carol Williams / February 17, 2022 /

To achieve success either as individuals or collectively as a group, we must resist the temptation to be stagnant and always seek improvement. A previous article where I discuss how to develop a growth mindset is one example of putting this idea into action. Kaizen, a Japanese term that literally translates to “continuous improvement,” is…

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Qualitative vs. Quantitative Risk Assessment – Can There Be a Middle Road?

By Carol Williams / August 12, 2021 /

In my years as both a risk practitioner and ERM consultant, there has and continues to be intense debate around methods for assessing risks. (If you are unfamiliar with the meaning of qualitative and quantitative, this article provides a quick overview.) To illustrate this debate, take the following two comments from a previous article asking…

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Can We Trust the Experts during Risk Assessments?

By Carol Williams / May 26, 2021 /

The nature of being a risk manager requires us to engage extensively with subject-matter experts (SMEs) to understand concepts, processes, and risks. We use this information to understand how the SMEs’ activities fit into the bigger picture of the organization. Without their input, it’s almost impossible to determine the appropriate risk response unless you have…

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future of risk management

Is Quantitative the Only Future of Risk Management?

By Carol Williams / October 27, 2020 /

Quantitative methods for understanding how risk and uncertainty impacts the organization is a subject I’ve been focusing on more this year. Without a doubt, modeling, Monte Carlo simulation, and other advanced math-based methods can be a valuable tool for helping decision-makers in certain companies. Many risk management thought leaders, including some I quote often like…

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Why Do Most Organizations Avoid Quantitative Risk Assessment?

By Carol Williams / June 10, 2020 /

No ERM process that is effective at helping a company understand threats and opportunities to achieving objectives is going to just create a list of risks. While that may be sufficient for a regulator, it means absolutely nothing for helping executives run the organization better. After identification, companies then take the vital step of assessing…

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Using Monte Carlo Simulation to Support Decision-Making

By Carol Williams / March 18, 2020 /

My first interview with Hans Læssøe last month covered a wide-range of topics, including background on what led Hans’ former company to adopt ERM and a few factors key to its success. In this interview, we discuss a topic I’ve touched on briefly in previous articles but haven’t elaborated on much, until now. Monte Carlo…

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