The stakes for risk management decisions are higher than ever and thus these decisions need to be supported by a higher level of detail. Determining that appropriate level of detail is
a matter of understanding and grappling with the uncertainties of probability that inevitably challenge the risk management profession. We need to be able to critically assess the applicability and credibility of all sources of risk management information-from the numbers (the base of all risk analysis) to the intuitive powers of the risk decision makers.
A Lack of Data
To make sound judgments based on statistics, we need data. The more data the better. For most organizations, …