What methods can agencies use to identify risks that are not already realized problems?
Question asked by Anonymous
AFERM Experts Say...
Realized problems are by definition issues, also known as deviations from expectations. The events and conditions that caused the concern have already occurred and are usually referred to in the past tense. By comparison, unrealized problems, also known as risks, are usually referred to in the future tense or as “what if “ questions. The key to distinguishing unrealized risks from realized risks is to look at where they are in time and how they are described. In summary, when an issue is identified in past tense it is typically a realized problem while an issue identified in future tense, or as a “what if” statement, represents a potential threat or opportunity.