Effective management of risk requires Senior Management to make well-informed decisions. Well-informed decisions rely on Senior Management being able to make effective comparisons. Effective comparisons cannot be made without meaningful measurements. Unfortunately, risk assessment frameworks and reporting software solutions available today are checklist-based compliance tools that often produce meaningless measurements with risk issues expressed in qualitative terms such as “high, medium, & low” or “red, yellow, & green.”
With FAIR and RiskCalibrator a company’s decision-makers are finally presented with a quantitative economic view of their risk landscape and are able to make cost-effective decisions to manage risk. CXOWARE’s FAIRiq software is the “engine” that provides the foundation for deriving risk. It accomplishes this by taking risk factor measurements and applying sound and sophisticated mathematical principles to calculate the probable frequency (how often) and probable magnitude (how bad) of loss in monetary ($$) form. This output enables risk-assessment professionals to form normalized, quantitative comparisons between different types of risks, which then drive spending priorities and budget justifications for major projects.