We are all familiar with the concepts of risks and uncertainty. Risk is a quantifiable element of doing business, whereas uncertainty is something we'd like to be prepared for but is often challenging to quantify.
Events of the past three years, including those occurring now, have exposed us to both and while we can't predict uncertainty, we can at least work towards mitigating the risks that may result from these uncertainties.
Risk quantification (RQ) is a process of evaluating the risks that have been identified and developing the data that will be needed for making decisions as to what should be done about them. The "Guide to Project Management Body of Knowledge" describes risk quantification as evaluating risks and risk interactions to assess the range of possible outcomes.
Jonathan Jackson, director of sales engineering APJ at BlackBerry, defines risk assessment (RA) as the process of identifying and analysing potential risks to an organisation or a system. It involves evaluating the likelihood and the impact of different threats and vulnerabilities.
"It is essential to carefully evaluate and select a quantification approach that is appropriate for your organisation’s specific needs, and your specific circumstances. There are a lot of resources available for organisations to evaluate different solutions out there. Five things that I would consider would be scope, accuracy, usability, flexibility, and cost."
Jonathan Jackson
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