Risk, Uncertainty and Complexity


My colleague, Bala Desphande, from Ontonix USA, provides some further insight on subjects that are, undoudtedly, “closely related”. Ontonix  has developed a unique methodology for measuring the uncertainty within a relationship (between two parameters).

There are apparently as many different definitions of risk as there are practicing groups. But most definitions involve computing some form of probability of an event. Doug Hubbard in his book “Failure of Risk Management” makes a very convincing argument for standardizing the definition by invoking the difference between Risk and Uncertainty.

Uncertainty arises due to the fact that there may be multiple possibilities (or outcomes) for an event. Each of these possibilities can be associated with a probability. However, Risk arises only when some (or all) of these possibilities are associated with loss of value(s).

read the full post: Risk, Uncertainty and Complexity.

6 Responses to Risk, Uncertainty and Complexity

  1. I am in fact delighted to glance at this website posts which
    carries tons of helpful facts, thanks for providing these statistics.

    • Many thanks for the kind words! Always good to know that the blog is useful to others.

      david

  2. Drusilla says:

    Usually I do not learn post on blogs, however I would like to say that this write-up very pressured me to take
    a look at and do so! Your writing taste has been amazed me.
    Thanks, quite great article.

  3. Emelia says:

    Everything is very open with a very clear clarification of the issues.
    It was truly informative. Your site is very useful.
    Thanks for sharing!

    • Thank you and you are most welcome!

  4. Fantastic goods from you, man. I’ve understand your stuff previous to and you are simply too wonderful. I really like what you have received here, really like what you are saying and the way in which through which you are saying it. You make it enjoyable and you still care for to stay it smart. I can not wait to read far more from you. This is really a tremendous web site.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s