Risk Management ROI Moving Onto Executive Radar Screens

by Cutter Consortium

Computing the ROI for risk management is a dilemma that has plagued risk management for a very long time. The problem is, how do you go about proving a negative? In other words, how do you prove that by taking action x, some event y won't happen? Might that event not happen all by itself, without any intervention? In that case, aren't the resources spent on trying to mitigate the event's likelihood, consequences, or both being wasted?