risk and uncertainty slideshare

1. What is risk and uncertainty?
2. What is the difference between certainty risk and uncertainty?
3. What is uncertainty in risk assessment?
4. In which model there is risk and uncertainty?
5. What is the concept of uncertainty?
6. What is an example of uncertainty?
7. How do you manage risk and uncertainty?
8. How do you handle risk and uncertainty?
9. How does uncertainty affect decision making?
10. What are four examples of common risk responses?
11. What is uncertainty in risk management?
12. What is risk characterization?

What is risk and uncertainty?

Risk refers to decision-making situations under which all potential outcomes and their likelihood of occurrences are known to the decision-maker, and uncertainty refers to situations under which either the outcomes and/or their probabilities of occurrences are unknown to the decision-maker.

What is the difference between certainty risk and uncertainty?

Risk can be understood as the potential of loss. It is not exactly same as uncertainty, which implies the absence of certainty of the outcome in a particular situation. ... Conversely, uncertainty refers to a condition where you are not sure about the future outcomes.

What is uncertainty in risk assessment?

Uncertainty in risk assessment can be present in the characterization of the exposure scenario, the parameter estimates, and model predictions. ... Finally, model uncertainty occurs due to a lack of information or gaps in scientific theory required to make accurate predictions.

In which model there is risk and uncertainty?

In Probabilistic Models there is risk and uncertainty. Probabailistic models incorporate random variables and probability distributions into the model of an event or phenomenon.

What is the concept of uncertainty?

Uncertainty. The lack of certainty, a state of limited knowledge where it is impossible to exactly describe the existing state, a future outcome, or more than one possible outcome. ... A state of uncertainty where some possible outcomes have an undesired effect or significant loss.

What is an example of uncertainty?

Uncertainty is defined as doubt. When you feel as if you are not sure if you want to take a new job or not, this is an example of uncertainty. When the economy is going bad and causing everyone to worry about what will happen next, this is an example of an uncertainty.

How do you manage risk and uncertainty?

You can:

1. Identify and prioritize key risks and uncertainties.
2. Pre-emptively manage risk.
3. Actively seize upside potential.
4. Effectively allocate resources.
5. Create competitive advantage by identifying points of control.
6. Gain confidence that your chosen pay is correct.

How do you handle risk and uncertainty?

1. Four strategies. Below we present four strategies to deal with risk and uncertainty, which pull together insights from many different fields of research and cast them into a common setting. ...
2. Benchmark Strategy. ...
3. Financial Hedging Strategy. ...
4. Flexible Strategy. ...
5. Operational Hedging Strategy.

How does uncertainty affect decision making?

An increasing sense of uncertainty reflects a changing environment that will impact the choices we make. Recognizing and accommodating these changes provides the opportunity to increase decision making effectiveness.

What are four examples of common risk responses?

The following are the basic types of risk response.

• Avoid. Change your strategy or plans to avoid the risk.
• Mitigate. Take action to reduce the risk. For example, work procedures and equipment designed to reduce workplace safety risks.
• Transfer. Transfer the risk to a third party. ...
• Accept. Decide to take the risk.

What is uncertainty in risk management?

Risk, Uncertainty and Risk Management Defined. “Risk” and “uncertainty” are two terms basic to any decision making framework. Risk can be defined as imperfect knowledge where the probabilities of the possible outcomes are known, and uncertainty exists when these probabilities are not known (Hardaker).

What is risk characterization?

Risk characterization is the final phase of an ERA and is the culmination of the planning, problem formulation, and analysis of predicted or observed adverse ecological effects related to the assessment endpoints assessment endpointsAn explicit expression of the environmental value to be protected, operationally ...