Think Risk A Practical Guide to Actively Managing Risk

Risk is the single most prevalent and enduring factor that influences every individual, organization, and society. People often seek protection from negative risk events, but also seek to take advantage of opportunities arising from positive risk events. We may feel overwhelmed by messages encountered in daily interactions with media and society, contributing to a sense of ambiguity over how to act in response to risk-related information and misinformation. We seek to leverage evidence and reason to find our own balance between both positive and negative outcomes in an uncertain world. This groundbreaking book delivers practical concepts and tools that empower readers to leverage innovations in risk science to improve their abilities to interpret, assess, communicate, and handle risk. It provides a practical non-quantitative approach to understanding the risk and making better decisions involving risk. Think RISK covers several key themes in risk science: a) the main goals and strategies for understanding and managing risk; b) how readers can inform their risk stances by considering their own individual values and mission; c) the difference between risk and safety, and how that difference is critical for managing the risk; d) the role of psychological factors when understanding and managing the risk; e) the role of communication when understanding and managing the risk; and f) the general importance and incentives for effectively understanding and managing the risk. Written for business professionals in all private and public sectors, this book will also be relevant to non-business professionals such as medical practitioners and policymakers and would be an ideal fit for executive education and seminar-style courses in universities, corporate book clubs, and training seminars. Because it’s based on foundational and scientifically accepted ideas and principles, the book should remain relevant for many years.

Preface Rule 1: Risk is the single most constant and enduring factor in our lives and professions 1 The heart of risk science makes sense 2 We can agree to disagree on risk and uncertainty 3 Risk is about knowledge Rule 2: We do have some control, but not full control. When we accept this, we can actively manage that risk. * 4 You have some control. 5 Risk is not objective. 6 We are all biased. 7 The message matters 8 Risk is not just about dollars. Rule 3: Risk can be a good thing. 9 To manage risk is to balance the positive and the negative. 10 Risk management is worth the time and energy. 11 To manage risk is for our own benefit. 12 Piecing it all together: Examples of the risk science process 13 Conclusions

Shital Thekdi is Associate Professor of Analytics and Operations at the University of Richmond. She has coauthored several papers on risk management and decision-making. Terje Aven is Professor of Risk Analysis and Risk Management at the University of Stavanger, Norway, since 1992. Previously he was also Professor (adjunct) of Risk Analysis at the University of Oslo and the Norwegian University of Science and Technology.