Copyright © 2004-06 Adaptive Metrics Center A Division of Center For The Open Enterprise
The Adaptive Metrics Center
Risk Intelligence Metrics Reports
AMC is proud to announce the release of its first report and also its first risk intelligence report: Risk Intelligence Metrics: An Adaptive Metrics Center Industry Report.
Information about the report and other components of the Report Bundle is available here.
Risk is something we live with everyday. It is part of our being alive. Every living thing has expectations. And when it acts on those expectations, it risks error, because nothing living is infallible. Any one of our expectations may be wrong at any time. None of us is so wise, or so favored, or so skilled, or so wealthy, or so lucky, that we can avoid error and the risk of it.
Recent history is all about people taking risks they did not know they were taking, and losing out, indeed losing big. In business, risk assessment and risk management are more important than they have ever been. The Sarbanes-Oxley Act has focused the anxiety about risk into a concern for compliance with Government regulations. But beyond this concern with SOX compliance, there's also a renewed concern, after the "go-go" days of the late '90s, about managing risk to avoid the fate of the Enrons and Andersens.
In business, all eyes are focused on risk. The purpose of these reports is to present some new instruments and models for measuring risk intelligence. 'Risk Intelligence' is an ambiguous term. In many quarters, the term means a particular kind of business intelligence. And business intelligence, in turn, according to some, refers to a kind of information situated on a continuum of increasing value ranging from data, to information, to intelligence, to knowledge, and finally to wisdom. Sometimes the term 'actionable intelligence' is used to describe information that is good enough to act upon, even if it has not yet reached the level of quality we see in knowledge. In this context, actionable risk intelligence is information about the risks we face that is good enough to act upon.
These reports are not about risk intelligence in the sense of information that is higher quality than ordinary information, but of lesser quality than knowledge. They are about 'intelligence' in the sense of ability to learn and solve problems. More precisely, they are about tests and metrics measuring the relative ability to solve problems and reduce the risk of error in one's decision model solutions.