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.
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