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medical device, chemical processing, high-tech, government, and others is that the ability to address uncertainty The ability to handle uncertainty is designed, maintained, and improved throughout the expected life For all companies that contend with uncertainty risk planning and implementation is not optional. Without adequate preparation it is not possible to effectively prevent or recover from the effects of uncertainty What is effective is handling uncertainty by design.

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

The root cause of both waste and risk is uncertainty, which lean practitioners call variation or variability Both regulate processes to reduce uncertainty. This requires activities that improve certainty rather than just productivity. This is the domain of certainty programs and the practice of Lean Compliance. Certainty programs use regulation to reduce uncertainty and ensure Total Value is created.

Translating Uncertainty The value chain is responsible for creating value in the eyes of a company’s stakeholders and it does so in the presence of uncertainty. Margins are necessary to mitigate the effects of aleatory (i.e. irreducible) uncertainty. result any gains in financial margins will be lost (and often more) to address the disruption when uncertainty You might say that since every process operates in the presence of uncertainty, LEAN practitioners should

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

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.

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

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

financial integrity, legal adherence, ethical values — now runs through systems that are unreliable, uncertain They're obligation risks — the effect of AI uncertainty on commitments across every part of their organization

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