The concept of inherent risk originated in insurance where underwriters used Maximum Possible Loss (MPL) to determine the total value that could be lost in a catastrophic event. MPL considers the absolute worst-case scenario, with no controls in place, even if it’s highly unlikely to occur. The concept of considering the worst-case scenario loss has… Continue reading Never compare inherent to residual risk again
Tag: risk modeling
RISK-ACADEMY’s guide to risk culture
Enjoy the RISK-ACADEMY Guide on Risk Culture – an essential resource for professionals seeking to understand and improve the risk culture within their organization. In today’s rapidly evolving business landscape, the ability to make risk based decisions is paramount to an organization’s success. At the heart of this capability lies the organization’s risk culture –… Continue reading RISK-ACADEMY’s guide to risk culture
3 steps to apply Monte-Carlo simulations to any investment project decision
Risk management 2 shouldn’t be difficult. So I started on a quest to come up with a simple methodology for quantitative risk analysis that will actually improve decision making. This is still work in progress, so any comments and suggestions please send them to me or write below the article. Also don’t forget, RAW2020 is… Continue reading 3 steps to apply Monte-Carlo simulations to any investment project decision
