Businesses with effective approaches to risk management were better prepared for the pandemic and are more likely to thrive in the future. So how can finance professionals improve their organisation’s approach to risk?
Overview
This guide argues that many approaches to risk management are flawed and can make matters worse. Risk matrices based on ambiguous definitions of likelihood and impact are not up to the job.
Applying more quantitative approaches to risk can seem daunting. However, this guide shows you how using subjective probabilities and basic Monte Carlo analysis rapid improvements in risk management can be made.
The guide was prepared by Douglas Hubbard, the author of The Failure of Risk Management: Why it’s Broken and How to Fix It, now in its second edition. Douglas is the inventor of Applied Information Economics and has 30 years of experience consulting on the application of quantitative methods in decision making.
Related resources
- Risk management: mindfulness and clumsy solutions (open access)
- Future proof your organisation - an internal audit approach to operational resilience (open access)
- Special report: Risk management - a guide for finance professionals (ICAEW members and ACA students only)
- Superforecasting; How to improve your forecasting skills (ICAEW members and ACA students only)
Business resources
Thought leadership, insights, technical resources and professional guidance to support ICAEW members working in industry with their professional development.
Risk management
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