RISK vs UNCERTAINTY

IN TERMS OF ASSIGNING MANAGEMENT AND

PROBABILITIES CONTROLLABILITY
MEASURABILITY

The company has Risks can be Risks can be

Risk the experience to

assign probabilities
managed through
assessments and
measured
and
to future events. prior evaluations. quantified.

The company
does not have Uncertainty is
Uncertainty the experience Uncertainty is not
to assign uncontrollable. measurable or
probabilities. quantifiable.

Risk management is simplified because you can identify them and develop a
response strategy based on your experience while uncertainty is difficult because
there are too many variables involved and the outcome cannot be predicted.
Conclusion Nonetheless, in order to achieve company's objectives, one must be extremely
cautious, proactive, and open-minded in order to manage both risks and
uncertainty as they are generally recognized as significant in decision making.

BUCOT, Maria Alizah L.