SDIM71 Risk Management Assignment

Managing Uncertainty 

A considerable amount of research since the 1920s has been applied to the distinction between risk and uncertainty. It is argued that risk can be identified with a reasonable level of accuracy using data from the past. Uncertainty, on the other hand, is a spontaneous phenomenon especially when we consider natural events such as cyclones, earthquakes, and heavy or unseasonal snowfalls. Uncertainty can arise from human activity such as foreign or civil wars, foreign currency exchange rates, or significant technological advances. 

Please answer the following questions about uncertainty: 

Q1. What distinguishes risk from uncertainty?

Q2. How can project managers mitigate and manage uncertainty in their projects?

Q3. What are black swans and what do they tell us?