Risk means Loss Potential

Definition of Risk from Merriam-Webster online dictionary:

Definition of RISK

1: possibility of loss or injury :peril
2: someone or something that creates or suggests a hazard
3: the chance of loss or the perils to the subject matter of an insurance contract; also: the degree of probability of such loss b: a person or thing that is a specified hazard to an insurer c: an insurance hazard from a specified cause or source <war risk>
4: the chance that an investment (as a stock or commodity) will lose value
These are the only four definitions offered.
So if you build an ERM system and want to use the definition of risk that is popular with ERM folks:
Risk is a deviation from expected.
It is almost certain that among an English speaking non-risk manager management audience, your program will start out with at one count of DOUBLESPEAK against you.
The definition of DOUBLESPEAK, per Wikipedia is:
Doublespeak (sometimes called doubletalk) is language that deliberately disguises, distorts, or reverses the meaning of words. Doublespeak may take the form of euphemisms (e.g., “downsizing” for layoffs), making the truth less unpleasant, without denying its nature. It may also be deployed as intentional ambiguity, or reversal of meaning (for example, naming a state of war “peace”). In such cases, doublespeak disguises the nature of the truth, producing a communication bypass.
You start your discussion of Risk Management by telling everyone that UP is DOWN and HOT is COLD.  That OPPORTUNITIES are RISKS.
There is a common English meaning of the word risk that works very well to support Risk Management activities.
The objective of that other DOUBLESPEAK meaning of the word risk is to convey that risk managers can help to find and support opportunities.
Just say that. Say that you can help to find and support opportunities.
It will come off much better than redefining words that everyone knows the meaning of at the outset of your discussion.
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One Comment on “Risk means Loss Potential”

  1. подробнее

    Risk means Loss Potential | Riskviews

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