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University of Toronto

Department of Computer Science

CSC444 Lec03 9

Risk Management

Two Parts:

Risk Assessment

Risk Control

Definitions

Risk Exposure (RE) = p(unsat. outcome) X loss(unsat. outcome)

Risk Reduction Leverage (RRL) = (REbefore - REafter) / cost of intervention

Principles

If you don’t actively attack risks, they will attack you

Risk prevention is cheaper than risk detection

Degree and Cause of Risk must never be hidden from decision makers

“The real professional … knows the risks, their degree, their causes, and the action necessary to counter them, and shares this knowledge with [her] colleagues and clients” (Tom Gilb)

Source: Adapted from Blum, 1992, p441-447

see also: van Vliet pp189-191

© 2001, Steve Easterbrook

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