Watch the recording of a live debate between J.D. Solomon and Alex Sidorenko on whether risk matrices/heat maps have a place in risk management or should they be avoided like plague.
J.D.Solomon argued that risk matrices are the “gold standard” for risk analysis in most industries and all of those people cannot be wrong. Risk matrices can be improved and a few tips were provided. Qualitative can be just as effective as quantitative approaches. It is all about proper application and communication.
I argued that inherent flaws in the design of heat maps together with the cognitive biases that affect expert opinions are so great, that any use of heat maps is guaranteed to generate incorrect results and hence deceive the decision makers. There is literally nothing we can do to make them usable. J.D. made some good points and I responded to every them, offering a better alternative.
Check out other risk management books
RISK-ACADEMY offers online courses
Informed Risk Taking
Learn 15 practical steps on integrating risk management into decision making, business processes, organizational culture and other activities!
ISO31000 Integrating Risk Management
Alex Sidorenko, known for his risk management blog http://www.riskacademy.blog, has created a 25-step program to integrate risk management into decision making, core business processes and the overall culture of the organization.
Advanced Risk Governance
This course gives guidance, motivation, critical information, and practical case studies to move beyond traditional risk governance, helping ensure risk management is not a stand-alone process but a change driver for business.
