Uncertainty in business and life in general is said to exist due to the futuristic nature of outcomes. The outcomes of business operations are to be reached at sometime in the future after the tasks have been performed. G. Monahan agrees to this in his work starting that businesses face risk due to the uncertainty of possible outcomes of the actions taken in the course of doing their business.
And even in situation where a high level of certainty exist towards the achievement of positive outcomes, a sudden disastrous event may occur to change this fate. Barton t.l. Et. Al sheds light on the 'risk' debacles which the business community has witnessed that have resulted in considerable decrease in shareholder value, financial loss, damage of company reputation. So on . They point out that such events many include environmental disaster, mergers destroying shareholder value, organisations trading in complex derivative instruments without the understanding of the 'risks' involved, traders lacking oversight and have inadequate controls for the enormous risks they assume, etcetera, while placing emphasis on the attention and handling of such 'risks'
G. Monahan argues on the notion that risk is the same as uncertainty, by defining risk as anything that produces a distribution of various probabilities for various outcomes . Coso on the other hand, defines uncertainty as that which presents both risk and opptunities, with protentials to erode or enhance value. Risk is the possibility that the occurrence of an event will occur and positively affect the achievement of objective. The author has adopted the Coso definitions in this paper
Uncertainty in business and life in general is said to exist due to the futuristic nature of outcomes. The outcomes of business operations are to be reached at sometime in the future after the tasks have been performed. G. Monahan agrees to this in his work starting that businesses face risk due to the uncertainty of possible outcomes of the actions taken in the course of doing their business.And even in situation where a high level of certainty exist towards the achievement of positive outcomes, a sudden disastrous event may occur to change this fate. Barton t.l. Et. Al sheds light on the 'risk' debacles which the business community has witnessed that have resulted in considerable decrease in shareholder value, financial loss, damage of company reputation. So on . They point out that such events many include environmental disaster, mergers destroying shareholder value, organisations trading in complex derivative instruments without the understanding of the 'risks' involved, traders lacking oversight and have inadequate controls for the enormous risks they assume, etcetera, while placing emphasis on the attention and handling of such 'risks'G. Monahan argues on the notion that risk is the same as uncertainty, by defining risk as anything that produces a distribution of various probabilities for various outcomes . Coso on the other hand, defines uncertainty as that which presents both risk and opptunities, with protentials to erode or enhance value. Risk is the possibility that the occurrence of an event will occur and positively affect the achievement of objective. The author has adopted the Coso definitions in this paper
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