• The Failure of Risk Management

  • Why It's Broken and How to Fix It, 2nd Edition
  • By: Douglas W. Hubbard
  • Narrated by: Stephen Bel Davies
  • Length: 13 hrs and 29 mins
  • 4.5 out of 5 stars (21 ratings)

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Publisher's Summary

The Failure of Risk Management provides effective solutions to significant faults in current risk analysis methods. Conventional approaches to managing risk lack accurate quantitative analysis methods, yielding strategies that can actually make things worse. Many widely used methods have no systems to measure performance, resulting in inaccurate selection and ineffective application of risk management strategies. These fundamental flaws propagate unrealistic perceptions of risk in business, government, and the general public. 

This book provides expert examination of essential areas of risk management, including risk assessment and evaluation methods, risk mitigation strategies, common errors in quantitative models, and more. Guidance on topics such as probability modelling and empirical inputs emphasizes the efficacy of appropriate risk methodology in practical applications. 

Recognized as a leader in the field of risk management, author Douglas W. Hubbard combines science-based analysis with real-world examples to present a detailed investigation of risk management practices. This revised and updated second edition includes expanded coverage of innovative statistical methods and new cases of current risk management issues such as data breaches and natural disasters.

©2020 Douglas W. Hubbard (P)2020 Gildan Media

What listeners say about The Failure of Risk Management

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You don't know what you don't know

Contrary to the authors belief, Taleb does cite some practical ideas for dealing with the unknown unknown. Utility Theory, diversification and re-insuring are just a few.

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Put this in the “must read” category.

Excellent overview on the topic, and so telling for how many of the risk models that are widely known and accepted are not performing as they should. If you are creating serious risk formulas or managing those that do, this is a must read.

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Ready to shake your world?

Compelling and insightful. Caution: understanding the concepts put forth in this book will ruin your current (happily ignorant) acceptance of the article irresponsible and juvenile state of IT risk management promulgated by the industry and its lazy standards and certification bodies. Proceed at your own risk.

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  • Steve
  • 03-25-22

Good anecdotes on risk topics, flawed narration

I liked the argument in favor of mathematically and statistically rigorous treatment of risk. It stresses to use Monte Carlos and distributions, capturing all the uncertainty and correlations. A few areas took the listener through practical steps, like how to calculate 90% confidence interval from a standard deviation, whereas most parts were more philosophical rather than practical. The case studies were interesting and varied, from oil, volcanology, IT and cybersecurity etc. The book taught me that risk management is a science, not an art or management quip. Overall the book isn't a great textbook or reference; rather it's a collection of anecdotes and good practice.

The narration was clear but flawed. Sadly the narrator was not of a mathematical or scientific background, evidenced by regular mispronounciation of certain words and equations throughout, for example "chi-squared" as "chee" and "Richard Feynman" as "fain man" and the natural logarithm ln() was pronounced "in", which confused me for a moment. Probabilities were misread every time, e.g. P(B|A) read as "P times B divided by A". Bayes Theorem was misread every time so far as to be completely unrecognisable. For a book about statistics, and full of probabilities, this was completely unacceptable.

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  • Alexandra Hare
  • 06-27-21

The failure if risk management

I listened to this book to increase my understanding about risk management in health and safety. Hubbard explains the subject very well although the examples are mostly based on company risk and financial aspects of this (although the principles are the same). That said I found the answers to a few long standing bug bears that have bothered me for an age including why risk matrices are used, why they aren't good and why that is, and so will listen to it again. I also plan to visit Hubbard's website (mentioned) to formulate some calculations and find better methods to calculate risk. I am actually really glad that I chose this book.

While I am not an expert in maths Davies reads it very well and he kept my interest even when the book ventured into areas beyond by understanding. So, a big Thanks for that! This was a good combination of talents.

2 people found this helpful