Enterprise Risk: Quantitative Measurements of Risk

Description

Description: This course has been designed to introduce external and internal drivers that can result in a range of operational, financial, and strategic risks manifesting in organisations. This course examines the role of corporate governance and compliance, introducing relevant standards, and suggests methods of developing and implementing appropriate risk management strategies.

This course features dynamic and engaging video with audio narration, infographics and short quizzes to test your knowledge.

Background: If you accept the argument that risk matters and that it affects how managers and investors make decisions, it follows logically that measuring risk is a critical first step towards managing it. Quantitative measures of risk must combine in some form an expression of the two quantitative components of risk, namely some measure of the probability of the risk occurring; and the size of the impact should that risk occur.

Measure Of Impact
The selected measure or measures of impact will reflect what the risk manager cares about. It could be a case of human illness or of death, but the cases of illness could be further stratified into various levels of illness if the decision-maker values the distinction. There may also be a translation from an illness into an economic impact, or into some social impact measure, like quality adjusted life years (QALY).