Risk is “the probability or threat of quantifiable damage, injury, liability, loss, or any other negative occurrence that is caused by external or internal vulnerabilities, and that may be avoided through preemptive action”.
In asset-intensive industries, a significant contributor to the value generated from investments is the mitigation of risk. The challenge is to develop a consistent and rigorous approach to identify and assess risk, model how risks change over time, and quantify the extent to which various “preemptive actions” or investments can mitigate the identified risks.
This white paper outlines Copperleaf’s risk framework to assess risk and evaluate the benefits of making investments to mitigate risk.
