Risk is a subject prone to irrationality. We worry about mere possibilities. We ignore probabilities. We focus on perception. We ignore reality. Twenty percent of adults still smoke. Twenty percent of drivers still don’t wear seat belts. Two-thirds of the population is overweight/obese.
Risk is everywhere: market risks, operational risks, business risks, strategic risks, financial risks, environmental risks, etc. It’s too easy to think, “It’ll never happen to me” and ignore risks. Designing a solid risk management model requires attention to all risk areas. (more…)