Accendo Reliability

Your Reliability Engineering Professional Development Site

by Leave a Comment

Enterprise Risk management is Not a Standalone

Enterprise Risk management is Not a Standalone

Guest Post by James Kline (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

Enterprise Risk management is Not a Standalone

When Enterprise Risk Management (ERM) is advocated, it often seems like it is the end all and be all.  However, this is not true.  It is a methodology which assists management in identifying the risk that can prevent an organization from accomplishing it desired goals.  As such, it should be viewed as another management tool in a range of tools.  Perhaps the best presentation of this idea, for local government, is from the city of Oshawa Canada.  This piece discusses how it has integrated ERM into it continuous improvement process. [Read more…]

by 1 Comment

Mathematical Models, Algorithms, and Risk Management Methodologies

Mathematical Models, Algorithms, and Risk Management Methodologies

Guest Post by Geary Sikich (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

Introduction

We are enamored by risk models, mathematic algorithms, equations and formulae.  As a matter of fact, we have become so enamored by complex mathematical algorithms, formulas, models and derivatives that we have abdicated much of the analysis of risk, to these complex formulas and quantitative analysis methodologies touted by firms far and wide.  Where has this gotten us?  Are we better able to predict and measure risk exposures?  Are we managing risk more effectively? [Read more…]

by Leave a Comment

What is Risk?

What is Risk?

Risk is an interesting concept because there are a number of definitions and interpretations.  And this bears on quality because the lack of consistency can make deployment difficult.

Two elements to risk can be seen in the below definitions. There is upside risk and there is downside risk.  Some risk definitions have this and others don’t. [Read more…]