The Failure of Risk Management

Learn Why Risk Management is Still Broken and How to Fix ItThe risk management field is constantly evolving. Unfortunately, many organizations fail to evolve with it. They frequently apply risk management techniques that are proven not to work. These dangerously flawed methods are mere placebos which do nothing to reduce risk and improve decisions.That doesn't need to be the case. In The Failure of Risk Management, Second Edition renowned risk analysis expert Douglas W. Hubbard explains why certain common risk management techniques are causing bad decision making. He also explains which techniques actually deliver genuine value. Through case studies, review of existing research, and detailed procedures, Hubbard illustrates how decision-makers at organizations in any and all industries can adjust their risk management methodologies to better suit the demands of the modern world.Once you understand the reason popular risk management techniques don't work, you'll know what you must do to ensure your organization thrives in the future.Some study the theory of risk management. Some actively engage in risk management and find that what works in theory does not always work in practice. Some develop new technologies that will make risk management work better in the future. Doug Hubbard does all three. That's why this book should be your risk management must-read. -SAM L. SAVAGE, PhD, Executive Director, ProbabilityManagement.org, Author, The Flaw of Averages: Why we Underestimate Risk in the Face of UncertaintyCombining solid research with unassailable logic and examples, Douglas describes why today's common risk measurement beliefs and practices are profoundly flawed. Perhaps more importantly, he provides alternative methods that are effective and practical. His 'start simple and evolve from there' strategy is spot-on, proving that you don't need high levels of complexity or a PhD in math to make significantly better-informed risk management decisions. This book should be required reading for anyone whose job responsibilities include risk management. -JACK JONES, RiskLens Co-Founder and Chief Scientist, Creator of the FAIR methodNot long after the Great Recession of 2008, I assigned my students the First Edition of The Failure of Risk Management as required reading. My students still tell me that they turn to this book in their professional careers. Hubbard disrupted the world of risk consultants with this masterpiece and with its Second Edition he brings us fresh examples and insights from new research. -PETER ALAN SMITH, Professor of Insurance and Risk Management, College of Charleston School of BusinessThe First Edition of The Failure of Risk Management demolished myths and mistakes and the thinking that qualitative assessments are 'good enough.' The Second Edition extends this excellent work with new useful and practical methods to be quantitative in assessing risk and taking actions to manage it. -STEVE ROEMERMAN, Lone Star Chairman and CEO