Pay For Mistake :- Current crisis has imposed organization to improve their effectiveness of risk management. It is a time when organization cannot adopt “pay for mistake” , which is commonly adopted by most of the organizations in golden days of Economy.
Negative Outcome Approach:- The existing methods use the probability of a negative outcome to represent risk. Current representation of risk covers only one subcomponent of risk (i.e., the probability of a negative outcome) and leaves out another important subcomponent (i.e., the level of uncertainty concerning whether the outcome will be positive or negative).
Generic Solutions of existing Methods:- How to estimate the probability of a threat’s occurrence and the overall ISS risk, existing methods only provide general suggestions.
Events can be represented in both forms either positive or negative. Events with positive impact reflects opportunity & events with negative impact represents risk. This opportunity and risk can be framed into gain frame & loss frame. Decision makers base their verdict depending upon the frames and accordingly they select appropriate controls for risk avoidance and its mitigation .
But, variance in actual outcome from expected outcome of an event can create a new set of challenges for the organization. In this project , we are attempting to propose a model that will optimize and reduce the Uncertainty.