ABSTRACT
The underlying concepts of risk, opportunity and probability, together with the need for individual judgment, constitute a distinct way of reasoning. The need for integration can be regarded as a form of pressure intended to present risk management procedures with, and alongside, standard business functions. On the other hand, risk management as a separate function is a force that is pulling it away from other business functions. These two opposing forces, together with solutions that are highly situation-specific, need to be acknowledged as characteristics of risk management. The aim of this chapter is to present and discuss a set of key elements that seem to form the basis of workable solutions to quantitative risk management.
