Professor Paul Sweeting, Honorary Professor of Actuarial Science at SMSAS, and chief risk officer at Hassana Investment Company, has written a piece entitled ‘Uncertain terms: how we think about risk‘ for the Institute and Faculty of Actuaries‘ The Actuary magazine.
In the article, Professor Sweeting reflects on the way we think about, and distinguish between, different types of risk.
‘When thinking about risk, a good place to start is the decision-making process’, Professor Sweeting writes. ‘When we make decisions, we weigh up what we want to happen and what could go wrong – even if we’re not doing so consciously. We can think about this process in terms of optimisation: what we want to happen is the objective; what could go wrong is the risk. However, ‘risk’ can mean several different things’.
The full article is available to read on The Actuary website, here:
https://www.theactuary.com/2021/07/02/uncertain-terms-how-we-think-about-risk