Quantity, Quality and Variety
Another way to think of ERM is to focus on just three things:
- Quantity of Risk – is the usual focus on what can be measured.
- Quality of Risk – is something that is often left out – it relates to how well you are controlling that what you have is what you think that you have. Lowest quality risk might well be anything.
- Variety of Risk – is what you need for resilience. No matter how well you control the quantity and quality of risk, if you are not making sure that you have variety, then you have a mono culture. Monocultures look great – until they die out all at the same time.