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However, when uncertainty (the root cause of risk) is connected with natural variation (aleatory uncertainty Also, when uncertainty is due to a lack of knowledge (epistemic uncertainty) prediction is limited based We need to estimate uncertainty (both aleatory and epistemic), its impacts, and the effectiveness of

Hazards are sources of uncertainty, and as we know, uncertainty creates the opportunities for risk. You can try, and many will, to deal with the combinatorial explosion of the effects of AI uncertainty Yet, some will take the advice of the wise risk manager and contend with the uncertainties first. Heed the advice of the wise risk manager: “If you want to handle AI risk, contend with the uncertainties

Staying between the lines is focused on keeping risk out and certainty in. This is a dynamic and continuous endeavour to keep the dragons of uncertainty at bay and far enough away This is accomplished by contending with uncertainty using margins and buying down risk to levels needed Improvements are triggered by the presence of uncertainty between us and our objectives.

The primary purpose of risk management is to handle the possible effects of uncertainty against specified Risk is always associated with uncertainty as defined by ISO 31000 where risk is, “the effects of uncertainty We can therefore classify risk treatments according to the nature of this uncertainty as follows: Risk due to epistemic uncertainty; lack of knowledge or know how; this risk is reducible. Risk due to aleatory uncertainty ; caused by inherent randomness or natural/common variation; this risk

The Uncertainty of AI The Cynefin Uncertainty Map Laqua emphasized that uncertainty is the root cause Dimensions of AI Uncertainty The presentation explored several critical dimensions of AI uncertainty: Uncertainty about Uncertainty: AI's outputs are driven by networks of probabilities, creating a meta-level uncertainty that requires new approaches to risk management. Uncertainty about Ethics : Citing W.

Every plan, business, or endeavour happens in the presence of uncertainty. is responsible for creating value in the eyes of the stakeholders and it does so in the presence of uncertainty Margins are necessary to mitigate the effects of aleatory (i.e. irreducible) uncertainty. Compliance programs also serve the value chain by mitigating the effects of epistemic (i.e. reducible) uncertainty To succeed in the presence of uncertainty a balanced scorecard should include objectives and measures

Productivity programs improve margin to contend with aleatory uncertainty (having to do with chance) It’s here that certainty programs are used to achieve compliance associated with buying-down risk that is reducible – those connected with epistemic uncertainty (lack of knowledge). Certainty programs create a second wing that truly balances corporate activities to keep businesses flying

AI technology has inherent uncertainties that exceed those of traditional technologies. These uncertainties create opportunities for emerging and novel risks. What makes AI a potential hazard is the nature of its uncertainties: Probabilistic outputs rather than Implement monitoring systems to detect emerging risks Design guardrails appropriate to the level of uncertainty By preserving existing safety systems, managing AI-specific uncertainties, and designing inherently safer

Does your improvement process properly contend with uncertainty and risk? However, what makes the process proactive is the identification and assessment of uncertainty (the root Risk-based continuous improvement proactively contends with uncertainty and its effects on goal-directed It is triggered not by the presence of a problem but by the presence of uncertainty. It is applied to each process affected by uncertainty along with the processes that anticipate, assess

They are operating at the edge of uncertainty; one violation, one injury, one defect, or one mishap away Instead of operating at the edge of uncertainty, ethical and forward-thinking organizations operate in enabler of compliance outcomes, proactivity, and holistic improvements triggered by the presence of uncertainty

Welcome to the world of risk management, where narrow definitions often create blind spots and uncertainty TRM would act as an umbrella, encompassing all potential sources of uncertainty that can impact an organization's 31000 from my perspective, recognizes what is well known to many in high-risk industries which is that uncertainty Uncertainty creates the opportunity for risk independent of its effects. risk-based regulations mandate this approach and further define its natures : aleatory and epistemic uncertainty

The Game of Snakes and Ladders Risk as we now understand it is a manifestation of uncertainty which has The presence of uncertainty affects everything. All snakes contribute to the uncertainty of winning the game. of uncertainty on mission objectives. However, there were organizational hazards, uncertainties, and associated risk.