The Failure of Risk Management Book Summary - The Failure of Risk Management Book explained in key points
Listen to the Intro
00:00

The Failure of Risk Management summary

Douglas W. Hubbard

Why it’s Broken and How to Fix It

4.4 (20 ratings)
23 mins
Table of Contents

    The Failure of Risk Management
    Summary of 9 key ideas

    Audio & text in the Blinkist app
    Key idea 1 of 9

    Risk management means being smart about taking chances.

    You’ve probably heard the term risk management; it’s part of the jargon used by organizations and governments, but it’s also entered the public vocabulary. While there are many definitions of the terms risk and management, it’s helpful to keep things simple:

    Start with risk. You could say that risk is the likelihood and magnitude of an undesirable event. For instance, in a scientific or mathematical context, risk always describes the probability and magnitude of an undesired effect.

    But what do probability and magnitude measure?

    While probability always estimates the odds that something will happen (that your home being struck by lightning, for example), magnitude can be measured in a variety of dimensions, most commonly the loss of money or of lives. But keep in mind that an undesirable event could be anything – from a natural disaster to a major product recall to political instability.

    Now that you know the definition of risk, what does it mean to manage it?

    Managing risk means effectively using resources to decrease danger. For instance, one of the most common definitions of the word management is “the planning, organization, coordination and direction of resources toward defined objectives.” In other words, using what you have to get what you need.

    In order to achieve this goal, a risk manager always tries to reduce the risk of pursuing an objective. Just like any other management task, managing risk is an effort to effectively use limited resources, like money and time, to complete a task.

    Now that you know what risk management is, it’s time to learn how it developed and how it applies today.

    Want to see all full key ideas from The Failure of Risk Management?

    Key ideas in The Failure of Risk Management

    More knowledge in less time
    Read or listen
    Read or listen
    Get the key ideas from nonfiction bestsellers in minutes, not hours.
    Find your next read
    Find your next read
    Get book lists curated by experts and personalized recommendations.
    Shortcasts
    Shortcasts New
    We’ve teamed up with podcast creators to bring you key insights from podcasts.

    What is The Failure of Risk Management about?

    The Failure of Risk Management (2009) is a comprehensive guide to the history, methods and myths of risk management. These blinks explain why common methods for managing risk are flawed and how to fix them; they also offer tried and true alternatives for measuring and mitigating risk.

    Best quote from The Failure of Risk Management

    Garbage times garbage is garbage squared.

    —Douglas W. Hubbard
    example alt text

    Who should read The Failure of Risk Management?

    • Business owners and investors
    • People interested in how risk can be accurately calculated
    • Managers from all fields

    About the Author

    Douglas W. Hubbard is the developer of a decision-analysis method known as Applied Information Economics. He is also the founder of Hubbard Decision Research and author of How to Measure Anything: Finding the Value of Intangibles in Business.

     

    [Douglas W. Hubbard: The Failure of Risk Management] copyright [2009], John Wiley & Sons [Inc. or Ltd. as applicable] Used by permission of John Wiley & Sons [Inc. or Ltd. as applicable] and shall not be made available to any unauthorized third parties.

    Categories with The Failure of Risk Management

    Books like The Failure of Risk Management

    People ❤️ Blinkist
    Sven O.

    It's highly addictive to get core insights on personally relevant topics without repetition or triviality. Added to that the apps ability to suggest kindred interests opens up a foundation of knowledge.

    Thi Viet Quynh N.

    Great app. Good selection of book summaries you can read or listen to while commuting. Instead of scrolling through your social media news feed, this is a much better way to spend your spare time in my opinion.

    Jonathan A.

    Life changing. The concept of being able to grasp a book's main point in such a short time truly opens multiple opportunities to grow every area of your life at a faster rate.

    Renee D.

    Great app. Addicting. Perfect for wait times, morning coffee, evening before bed. Extremely well written, thorough, easy to use.

    People also liked

    Start growing with Blinkist now
    28 Million
    Downloads on all platforms
    4.7 Stars
    Average ratings on iOS and Google Play
    91%
    Of Blinkist members create a better reading habit*
    *Based on survey data from Blinkist customers
    Powerful ideas from top nonfiction

    Try Blinkist to get the key ideas from 7,000+ bestselling nonfiction titles and podcasts. Listen or read in just 15 minutes.

    Start your free trial