The Failure Of Risk Management - 759 Words

Hubbard is very contemptuous of much of the Risk Management practiced by organisations. Do you agree with his comments and suggested methods of managing analysis of risks? In The failure of risk management- why it’s broken and how to fix Hubbard has put a very good argument regarding the failure of old risk management techniques. Hubbard has tried to show how the risk management methodologies and techniques used currently by many organisation lack scientific and mathematical approach towards risk management. Hubbard has asked 3 basic questions in his book based on the several risk management methodologies 1. Do these risks management methods work? 2. Dose the organisation’s using these methods know if these methods didn’t work? 3. What are the consequences if they didn’t work? In my opinion Hubbard has put the very strong argument in his book, as many organisations have adopted risk management systems. But the problem is, the systems are not backed up by measurable scientific results and often can actually make things worse. After reading the text I don’t think that Hubbard is being contemptuous of the risk management practices but he is trying to identifying new ways of better utilising these methods. After reading the book we can see that Hubbard is a strong advocate of quantitative risk management techniques such as Monty Carlo simulation. However, he believes that they are often used incorrectly. Specifically, 1. They are often used without empirical data or validationShow MoreRelatedRisk Management Failures of British Petroleum2022 Words   |  9 Pagesignited. The explosion caused all the casualties and substantial damage to the rest of the plant. The incident came as the culmination of a series of less serious accidents at the refinery, and the engineering problems were not addressed by the management. 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