Subjectivity in the Riskmanagement

Abstract

Heraclitus, the ancient Greek philosopher, said that "change is the only constant." We live in a dynamic world where factors such as overpopulation, resource exploitation, climate change, and many others accelerate these processes, impacting our daily lives on national, organizational, and individual levels. Change does not necessarily carry a negative connotation; however, we seek to avoid the negative impacts while approaching positive outcomes with confidence. One prevalent and perhaps most effective way of preparing for and evaluating possible outcomes of change is through risk management. The foundation of risk management lies in assessing risks to determine which outcomes are expected, acceptable, and which processes need to be addressed. Nevertheless, risk assessment always depends on the evaluator, and the objectivity of the evaluator significantly influences the end result.