Are You Better at Managing Risk or Uncertainty?
Risk and uncertainty are not the same things.
Risk is NOT Uncertainty
Risks are ‘known unknowns’ – things that can be measured.
Think of it like climbing Mount Everest
It can be measured, a route can be mapped, exact equipment can be prepared.
Uncertainties cannot be measured - they are ‘unknown unknowns’.
Imagine you are going to build a mountain. (stay with me here)
Nobody can measure that mountain until after you have built it.
When you communicate to investors or buyers, there is always a focus on risks and how you intend to minimise or mitigate them.
What about uncertainties, how will you communicate how you intend to work with them?
Risk is about projections, as you can make projections when dealing with risk.
Uncertainty is about predictions
Predictions are more about your envisioning the future and describing it.
Predictions therefore are much more reliable in the near future.
Beyond that, there is too much uncertainty and most predictions unravel.
Go well in your endeavours