Glossary

Abstraction

The practice of hiding complex implementation details and exposing only the essential features of an object or system to simplify its use and understanding. (View Tag)

Agent

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Avoid

Taking a route on the risk landscape around the risk. (View Tag)

Bet

Taking a decision to move somewhere new on the Risk Landscape to try to improve your fortunes. (View Tag)

Related Terms:

• Expected Return

  The probability-weighted return of the bet. (View Tag)

• Expected Value

  The probability-weighted average value of the outcome. (View Tag)

• Payoff

  The payoff (or gross winnings) from winning a bet. (View Tag)

• Stake

  The amount you have to pay to take a bet. (View Tag)

Exploit

Take advantage of an upside risk or opportunity. (View Tag)

Feedback Loop

The process of testing an Internal Model, through taking action to Meet Reality. Typically, we talk about short or long feedback loops, depending on the intervals between Meeting Reality. (View Tag)

Goal

A picture of the future that an individual or team carries within their Internal Model; An imagined destination on the Risk Landscape. A specific Upside Risk we'd like to nurture and realize. (View Tag)

Related Terms:

• Anti-Goal Risk-First Term

  A particular destination on the Risk Landscape you don't want to arrive at. (View Tag)

Internal Model

The risk model of reality held by an individual, team, software system or other Agent. (View Tag)

Meeting Reality Risk-First Term

Testing out the predictive power of an Internal Model by exposing it to reality. (View Tag)

Reduce

Minimise the impact of a risk arising. (View Tag)

Retain

Accepting a risk you can't reduce, share or avoid. (View Tag)

Related Terms:

• Control

  Accepting a risk but making provisions to ensure it doesn't worsen. (View Tag)

• Ignore

  Ignoring a risk entirely. (View Tag)

• Monitor

  Identifying, quantifying and measuring a risk to help manage it. (View Tag)

Risk

A possibility of loss or cost. (View Tag)

Related Terms:

• Attendant Risk Risk-First Term

  A Risk you expect to face as the result of Taking Action. (View Tag)

• Hidden Risk Risk-First Term

  Risks you aren't aware of when you consider Taking Action. i.e. an unknown unknown. (View Tag)

• Upside Risk

  In investing, upside risk is the uncertain possibility of gain. e.g. the opportunity to make high levels of profits. (View Tag)

Risk Landscape Risk-First Term

A hypothetical landscape on which risks can be placed. Taking Action means making a move on the Risk Landscape to reposition a project so that it has a different profile of Attendant Risks. (View Tag)

Share

Sharing with another party the burden or loss of a risk. (View Tag)

Take Action

Refers to any activity in the project. Actions are taken in order to manage some risk. At the same time, Taking Action usually means interacting with reality and updating the Internal Model. (View Tag)