The Failure of Risk Management

Decision-makers at organizations in any field rely on risk management and analysis methods presumably to improve critical decisions. However, commonly used methods show little evidence of improving decisions. Instead, they could actually make decisions worse. This is because many of the most popular risk management tactics aren't rooted in sound quantitative analysis. In the Second Edition of The Failure of Risk Management, Douglas W. Hubbard, inventor of Applied Information Economics (AIE), addresses how organizations and governments can perform risk analysis properly. He also explains how many basic methods are misapplied, helping readers better understand what steps they must take to improve their risk management techniques. This latest edition of The Failure of Risk Management is particularly useful to decision-makers adapting to a fast-changing world. It includes updated examples citing such recent events as natural disasters and data breaches, describes additional statistical methods, and incorporates updated research. The reader learns about effective methods which can start simple and evolve as needed. Douglas Hubbard is the ideal author to share this knowledge. His AIE methodology has been used by organizations in numerous fields, including cybersecurity, aerospace, biotech, commercial real estate, entertainment, and military logistics, among many others. Leveraging decades of experience in risk management, as well as real-world case studies, he identifies key weaknesses preventing organizations of all kinds from improving their risk management techniques. Additionally, he identifies which methods have been shown to work. Effective risk management plays an essential role in effective decision- making. By applying the insights provided in this book, you'll find yourself (and your organization as a whole) making smarter decisions based on techniques that have shown a measurable benefit.