Critical Aspect: Tolerable Risk Level in Analysis
2021-03-03
Establishing risk by itself is not so attractive. You can express risk as very high, 1000 or red. It doesn't matter that much.
What is much more important is whether you know when your risk is too high. A risk of 1000 sounds high, but if your tolerable risk level is 10000, it is low. Not knowing your tolerable risk is the worse thing.
How much risk you can tolerate is a personal issue. Understanding your tolerable risk applies to people as well as to companies. But it is the one aspect of risk analysis that is often overlooked in business. It is the one aspect that makes a massive difference in the results, a significant difference in what you will do with the results or not.