Wednesday, August 3, 2011

Risk Management again

Interesting tweet from @joshcorman this morning:

@joshcorman: I believe in the concept of Risk Management. What I seldom see is comprehensive/accurate knowledge to inform the outcomes.

I share the same feeling about seeing enough useful and reliable data that could be used for that. I think we can go further and apply some basic economics here; Risk Management is useful and applicable when the cost to obtain the necessary data/knowledge required as input AND to inform the outcomes is lower than the potential impact of going wrong with other "educated guessing techniques".

So, if you need to spend the same amount of money/time to get some reasonable accurate data to manage risk appropriately that you would eventually lose from going wrong with another guesstimative method, maybe it's better to just not bother.

No comments:

Post a Comment