The augmented subjective risk management process

Abstract

PurposeThis paper aims to present an augmented subjective risk management process that can partially solve the problem of inconsistent results in qualitative risk management. Note that “subjective” in this context is to separate this risk management process from the purely statistical risk management processes often associated with finance.Design/methodology/approachThe approach has been developed by logically approaching the problem of inconsistency and, based on experience and literature review, conceptually designing a solution.FindingsThe presented approach seems workable and indeed an improvement over standard qualitative approaches given reasonable skillful implementation.Research limitations/implicationsThe approach has not yet been tested in real life, which must be undertaken in the future.Practical implicationsThe presented approach will expand the subjective risk management process to include information management and to some extent knowledge management and thus add some more activities to the practice of risk management.Originality/valueThe paper presents an approach that so far seems useful in improving the consistency of subjective risk management. Also, it may be a valuable point of departure for further research.