Numerous techniques to assess risk are available. Most formal techniques are based on identifying the hazard (the potential for harm), and determining the amount of risk (low, medium or high) by calculating, observing or estimating.
Our personal risk tolerance is directly influenced by the severity of the outcome. If there is a high cost associated with a risk, we are more prone to comply with the rules set in place. While writing this post, I am reminded of today’s airline industry.
