Measuring the Uncertainty in Your Risks

When dealing with different risks, how does your organisation determine their uncertainty? And what methods do you use to determine how these uncertainties could affect you?

Uncertainty Assessment is like having a system to measure how much you don't know and how that might impact your organisation.

It uses techniques like guessing how likely something is to happen and how big a deal it would be if it did. These methods help turn uncertainty into numbers to see the most important uncertainties.

Think about making an uncertainty matrix. For each risk, you'd guess how likely it is to happen and how much it would mess things up if it did.

This helps you see which risks are the most significant deal and need the most attention. It's a way to focus your resources on the dangers that could hurt or help your organisation the most.

Measuring uncertainty is a big part of the third pillar of our '4 Pillars For Navigating Uncertainty' approach. It's all about understanding uncertainty in a structured way so you can manage it to match your organisation's goals. It's like turning uncertainty into something you can work with and plan for.

Measuring the Uncertainty in Your Risks