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Risk VS Uncertainty

1) The key difference between risk and uncertainty is that risk is an event with a known probability of occurring and potential consequences, while uncertainty refers to an event with an unknown or completely unpredictable outcome. 2) There are three main types of risk: hazard risks which only have negative outcomes, control risks which create uncertainty about outcomes, and opportunity risks which organizations take to achieve positive returns. 3) Risks can be classified based on their potential impact, such as effects on an organization's finances, infrastructure, or reputation, or according to other standard frameworks. Understanding risk likelihood and magnitude is important for determining how to manage different risks.

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88 views16 pages

Risk VS Uncertainty

1) The key difference between risk and uncertainty is that risk is an event with a known probability of occurring and potential consequences, while uncertainty refers to an event with an unknown or completely unpredictable outcome. 2) There are three main types of risk: hazard risks which only have negative outcomes, control risks which create uncertainty about outcomes, and opportunity risks which organizations take to achieve positive returns. 3) Risks can be classified based on their potential impact, such as effects on an organization's finances, infrastructure, or reputation, or according to other standard frameworks. Understanding risk likelihood and magnitude is important for determining how to manage different risks.

Uploaded by

maryam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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RISK VS UNCERTAINTY

Manajemen Resiko Teknologi Informasi / Risk


Management of Information Technology

Maryam
Prodi Informatika
Universitas Muhammadiyah Surakarta

1
Learning Objectives

In this session,you will be able to comprehend:


− The differences between risk and uncertainty
− Types of risk
− Risk examples

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Risk vs. Uncertainty

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Risk vs. Uncertainty

“All risks are uncertain,however,


not all uncertainties are risks”

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Uncertainty - Definition

▪ Uncertainty is a lack of complete certainty.


▪ When something is not known, or
something that is not known or certain
− Outcome of any event is completely unknown
and cannot be measured, or guessed

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5
RISK definition

▪ Risk is

•The combination of the probability of an uncertain event and its

consequences.

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▪ Risk is an uncertain event or condition that,
if it occurs, has an effect on at least one
project objective.
− Objectives can include scope, schedule, cost,
and quality
− A risk may have one or more causes and, if it
occurs, it may have one or more impacts

▪ Project risk is always in the future.


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7
How a risk could arise?

▪ Risks arise because of:


− limited knowledge, experience or information
and uncertainty about the future.
− a requirement, assumption, constraint, or
condition that creates the possibility of negative
or positive outcomes
− changes in the relationships between parties
involved in an undertaking.

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Types of risks

▪ Every risk has its own characteristics that


require particular management or analysis.
▪ Types of risks:
− Hazard (pure) risks
− Control (uncertainty) risks
− Opportunity (speculative) risks

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Types of risks

1. Hazard (pure) risks


• certain risk events that can only result in negative outcomes
• organizations will have a tolerance of hazard risks
2. Control (uncertainty) risks
• certain risks that give rise to uncertainty about the
outcome of a situation
• associated with project management
1. Opportunity (speculative) risks
• organizations deliberately take risks, especially marketplace
or commercial risks, in order to achieve a positive return
• organization will have a specific appetite for investment in
such risks

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Risk Classification System

▪ Risks can be classified according to:


− the nature of the impact, e.g. the finance of the
organization, infrastructure, reputation, etc.
− Other standards & framework

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Risk Classification System

▪ Do you still remember what risk breakdown


structure is?

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Risk likelihood (probability) & magnitude
(impact)

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Risk Importance

▪ Operations will become more efficient


− events that can cause disruption will be identified
in advance
− possible to take action in advance
▪ Processes will be more effective
− risks involved in the alternatives that may be
available
▪ Strategy will be more efficacious
− the risks associated with different strategic options
will be fully analyzed and better strategic decisions
will be reached.
− capable of delivering the required outcomes

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END

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