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Risk modelling
The strategic decisions of a business are based on plans and assumptions about how the future will develop. These assumptions are more or less uncertain, in fact, the only thing that is certain that the outcome will not be exactly as expected. A plan and the financial estimates it contains is a modelled representation of…
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Risk tolerance
One of the most important concepts within risk management is risk tolerance. Without clearly defining risk tolerance it is virtually impossible to implement good risk management, since we do not know what to measure risk against. Defining risk tolerance means to define how much risk the business can live with. Risk tolerance is vitally important…