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    Risk VS Uncertainty

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    maryam
    1) The key difference between risk and uncertainty is that risk is an event with a known probability of occurring and potential consequences, while uncertainty refers to an event with an unknown or completely unpredictable outcome. 2) There are three main types of risk: hazard risks which only have negative outcomes, control risks which create uncertainty about outcomes, and opportunity risks which organizations take to achieve positive returns. 3) Risks can be classified based on their potential impact, such as effects on an organization's finances, infrastructure, or reputation, or according to other standard frameworks. Understanding risk likelihood and magnitude is important for determining how to manage different risks.

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    Risk VS Uncertainty

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    maryam
    33 views16 pages
    1) The key difference between risk and uncertainty is that risk is an event with a known probability of occurring and potential consequences, while uncertainty refers to an event with an unknown or completely unpredictable outcome. 2) There are three main types of risk: hazard risks which only have negative outcomes, control risks which create uncertainty about outcomes, and opportunity risks which organizations take to achieve positive returns. 3) Risks can be classified based on their potential impact, such as effects on an organization's finances, infrastructure, or reputation, or according to other standard frameworks. Understanding risk likelihood and magnitude is important for determining how to manage different risks.

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    2. Risk VS uncertainty

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    1) The key difference between risk and uncertainty is that risk is an event with a known probability of occurring and potential consequences, while uncertainty refers to an event with an unknown or completely unpredictable outcome. 2) There are three main types of risk: hazard risks which only have negative outcomes, control risks which create uncertainty about outcomes, and opportunity risks which organizations take to achieve positive returns. 3) Risks can be classified based on their potential impact, such as effects on an organization's finances, infrastructure, or reputation, or according to other standard frameworks. Understanding risk likelihood and magnitude is important for determining how to manage different risks.

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    33 views16 pages

    Risk VS Uncertainty

    Uploaded by

    maryam
    1) The key difference between risk and uncertainty is that risk is an event with a known probability of occurring and potential consequences, while uncertainty refers to an event with an unknown or completely unpredictable outcome. 2) There are three main types of risk: hazard risks which only have negative outcomes, control risks which create uncertainty about outcomes, and opportunity risks which organizations take to achieve positive returns. 3) Risks can be classified based on their potential impact, such as effects on an organization's finances, infrastructure, or reputation, or according to other standard frameworks. Understanding risk likelihood and magnitude is important for determining how to manage different risks.

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    of 16

    RISK VS UNCERTAINTY

    Manajemen Resiko Teknologi Informasi / Risk


    Management of Information Technology

    Maryam
    Prodi Informatika
    Universitas Muhammadiyah Surakarta

    1
    Learning Objectives

    In this session,you will be able to comprehend:


    − The differences between risk and uncertainty
    − Types of risk
    − Risk examples

    Page
    2
    Risk vs. Uncertainty

    Page
    3
    Risk vs. Uncertainty

    “All risks are uncertain,however,


    not all uncertainties are risks”

    Page
    4
    Uncertainty - Definition

    ▪ Uncertainty is a lack of complete certainty.


    ▪ When something is not known, or
    something that is not known or certain
    − Outcome of any event is completely unknown
    and cannot be measured, or guessed

    Page
    5
    RISK definition

    ▪ Risk is

    •The combination of the probability of an uncertain event and its

    consequences.

    Page
    6
    ▪ Risk is an uncertain event or condition that,
    if it occurs, has an effect on at least one
    project objective.
    − Objectives can include scope, schedule, cost,
    and quality
    − A risk may have one or more causes and, if it
    occurs, it may have one or more impacts

    ▪ Project risk is always in the future.


    Page
    7
    How a risk could arise?

    ▪ Risks arise because of:


    − limited knowledge, experience or information
    and uncertainty about the future.
    − a requirement, assumption, constraint, or
    condition that creates the possibility of negative
    or positive outcomes
    − changes in the relationships between parties
    involved in an undertaking.

    Page
    8
    Page
    9
    Types of risks

    ▪ Every risk has its own characteristics that


    require particular management or analysis.
    ▪ Types of risks:
    − Hazard (pure) risks
    − Control (uncertainty) risks
    − Opportunity (speculative) risks

    Page
    10
    Types of risks

    1. Hazard (pure) risks


    • certain risk events that can only result in negative outcomes
    • organizations will have a tolerance of hazard risks
    2. Control (uncertainty) risks
    • certain risks that give rise to uncertainty about the
    outcome of a situation
    • associated with project management
    1. Opportunity (speculative) risks
    • organizations deliberately take risks, especially marketplace
    or commercial risks, in order to achieve a positive return
    • organization will have a specific appetite for investment in
    such risks

    Page
    11
    Risk Classification System

    ▪ Risks can be classified according to:


    − the nature of the impact, e.g. the finance of the
    organization, infrastructure, reputation, etc.
    − Other standards & framework

    Page
    12
    Risk Classification System

    ▪ Do you still remember what risk breakdown


    structure is?

    Page
    13
    Risk likelihood (probability) & magnitude
    (impact)

    Page
    14
    Risk Importance

    ▪ Operations will become more efficient


    − events that can cause disruption will be identified
    in advance
    − possible to take action in advance
    ▪ Processes will be more effective
    − risks involved in the alternatives that may be
    available
    ▪ Strategy will be more efficacious
    − the risks associated with different strategic options
    will be fully analyzed and better strategic decisions
    will be reached.
    − capable of delivering the required outcomes

    Page
    15
    END

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