5 Minutes Podcast with Ricardo Vargas
Business:Careers
In this episode, Ricardo discusses the common practice of calculating Expected Monetary Value (EMV) for risk management. EMV involves multiplying the probability of a risk by its impact to determine the exposure and, in turn, the financial reserves needed. He points out that using EMV for risk reserves is only effective when managing a large portfolio of risks as an insurance company does. For small projects with just a few risks, relying on EMV is insufficient, and a different approach is needed. Ricardo suggests using more extreme scenarios, such as worst-case or best-case, depending on risk tolerance and project specifics. Large, complex projects, like nuclear power plants, require special consideration due to the potentially catastrophic impacts that may be financially unmanageable. Therefore, these projects are often funded by governments or large organizations. The key takeaway is that risk management involves more than just EMV calculations; it depends on the project's size and risk tolerance.
The Counterintuitive Nature of Exponential Growth
Cadence: The Heartbeat of your Project
4 Books and 3 Online Courses to Start your Year with the Right Foot
Looking back on 2021, Paving the Road for 2022
James Webb Telescope Launch: A Live Masterclass of Complexity and Risk Attitude
Trailer – 5 Minutes Podcast
No Rules Rules: The Counter-Intuitive Culture of Netflix
To Be or Not to Be Agile: That is the Question
Artificial Intelligence in Projects - Part 2/2 - Challenges
Artificial Intelligence in Projects - Part 1/2 - Definitions and Uses
How to Reframe your Fears
Three Tips to Improve Resilience and Deliver Better Results in Turbulent Times
3 Tips on How Time Affects Our Perceptions of Value in a Volatile Environment
What is Systems Thinking?
Why We Must Pay Attention to the Great Resignation In Our Projects
The Magic of Affinity Diagrams
How Fragile and Volatile are Businesses: The Facebook, Whatsapp, and Instagram Outage
Why Self-knowledge Improves Your Projects Results: 3 Golden Tips
IT Projects May Be Riskier than You Think
The Legal Team is the Best Friend in Protecting Your Project and Your Organisation (Stewardship)
Create your
podcast in
minutes
It is Free
The Commercial Edge: Unleash the Power of People
The emPOWERed Half Hour
Reaching your Goals
Insights@work
Business Dad
The Ken Coleman Show
The Cardone Zone