Title: The Failure of Risk Management: Why It’s Broken and How to Fix It / Edition 1
Author: Douglas W. Hubbard, Hubbard
ISBN-10: 0470387955
ISBN-13: 9780470387955
The 2008 credit crisis, terrorism, Katrina, computer hackers, andair travel disasters all have something in common-the methods usedto assess and manage these risks are fundamentally flawed. If riskscannot be properly evaluated, risk management itself becomes thebiggest risk. The Failure of Risk Management shows you howto identify and fix these hidden problems in risk management. Ineffective risk management methods, often touted as “bestpractices,” are passed from company to company like a bad viruswith a long incubation period: there are no early indicators of illeffects until it’s too late and catastrophe strikes. Exploring whyrisk management fails—the failure to measure and validatemethods as a whole or in part; the use of components known not towork; and not using components that are known to work—TheFailure of Risk Management shows you how to measure theperformance of risk management in a meaningful way, identify whererisk management is broken, and fix it. Respected expert and bestselling author Douglas Hubbard-creatorof the critically praised Applied Information Economics(AIE)—uses real-world examples to reveal the serious problemsin our current approaches to risk analysis. Hubbard skillfullyillustrates how to use a calibrated risk analyses approach, and themany benefits that go along with it, along with checklists andpractice examples to get you started. One of the first resources to apply risk management across allindustries, The Failure of Risk Management provides you withthe tools you need to hit the ground running with radically betterrisk management solutions. Here, you’ll discover: The diversity of approaches to assess and mitigate risks Why many influential methods-both qualitative and quantitativedon’t work Why we shouldn’t always trust assessments based on “experience”alone The fallacies that stop you from adopting better riskmanagement methods How those who develop models of risks justify (in error)excluding the biggest risks Adding empirical science to risk management
