On Thu, Dec 9, 2021, Duke Okes presented: ASQ RRD series webinar: Some Risks involved in Risk Assessments
While the past 20 years has seen risk management spread from primarily the financial industry to now being utilized in nearly all sectors, it’s become more evident that much of these efforts have failed to prevent some very serious failures. Part of the reason is the increased complexity of systems and interconnections, but some of the failures can also be attributed to the risk management process itself.
The purpose of this webinar is to focus solely on the risk assessment process, since it is key to the subsequent decision making about how to treat and monitor identified risks.
Many others have pointed out some of the risks associated with how risk assessments are performed (a few references are provided at the end of this article). This author has identified seven common errors seen over his years of studying, instructing and reviewing risk efforts.
The use of math (Likelihood X Impact) to determine level of risk
Using averages (vs. actual) when evaluating potential impact
Using single point estimates (vs. a range) to describe a risk
Use of qualitative (vs. quantitative) risk ranking scales
Using probability (vs. frequency) to describe risk opportunities
Using linear risk ranking scales
Lack of aggregation of risks
