The Failure of Risk Management
Why It's Broken and How to Fix It
Summary:
The book critically examines common risk management methodologies, such as qualitative risk assessments and risk matrices, exposing their flaws and lack of scientific validity. It then proposes more quantitative approaches, like Monte Carlo simulations and Applied Information Economics, to improve decision-making under uncertainty.
Key points:
1. Flawed Risk Methods: Hubbard criticizes common risk management techniques like qualitative assessments and risk matrices as ineffective, leading to bad decisions and resource waste.
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