The Risk Manager's Handbook: How To Measure And Understand Risks

Opposition to adopting formal risk management tends to use the process of risk measurement as its attack target — it's too subjective, it's too complicated, or it's too much investment just to reaffirm what we already know. Successful risk managers need to overcome these complaints by developing methodologies that support the needs and expectations of both those that will be contributing to and those that will be relying on the risk measurement information. In the third core step of the risk management process, which the ISO 31000 standard labels "risk analysis," you will consider relevant data points and inputs to determine the magnitude of risks. The output of this stage will help determine whether and how to act in response.