My good friend, Alex Hutton, has written an excellent post where he talks about the science of Risk Management.
I am not going to try and summarize what he says because he says it so well.
Do yourself a favor and go read it. Then go and look at some of the stuff he points to in the post. Then figure out how to apply it to your organization. Goodness will follow.
Risk Appetite: Counting Risk Calories is All You Can Do by Alex Hutton
-Kevin
Image courtesy of divaangelic2