2 Principle 11: Assesses Severity of Risk

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Lyrics

[Verse 1]
When danger lurks within our enterprise maze
We measure shadows cast by threats that wait
Impact times likelihood creates the haze
That shows us which storms we must navigate
Financial scars and reputation's fall
Operational chaos breaks the wall

[Chorus]
Assess the severity, weigh what's at stake
Impact and likelihood, decisions we make
Qualitative heat maps or quantitative dreams
Semi-quantitative scoring schemes
Severity tells us where to focus our sight
In the enterprise risk management fight

[Verse 2]
Inherent danger before controls take hold
Residual exposure when defenses stand
Velocity strikes fast, persistence bold
Duration matters - understand the span
Multiple dimensions paint the fuller scene
Strategic, legal, safety - what does it mean?

[Chorus]
Assess the severity, weigh what's at stake
Impact and likelihood, decisions we make
Qualitative heat maps or quantitative dreams
Semi-quantitative scoring schemes
Severity tells us where to focus our sight
In the enterprise risk management fight

[Bridge]
Monte Carlo simulations run the math
Fault trees branch to show the failure's path
Bow-tie analysis splits cause from effect
Bayesian inference helps us detect
Anchoring bias clouds our judgment clear
Groupthink whispers what we want to hear

[Verse 3]
Availability bias tricks our minds
Confirmation seeks what it wants to find
Normalcy assumes that all is well
Assessment methods help us break the spell
From heat maps glowing red to complex models
Cognitive traps become our biggest throttles

[Chorus]
Assess the severity, weigh what's at stake
Impact and likelihood, decisions we make
Qualitative heat maps or quantitative dreams
Semi-quantitative scoring schemes
Severity tells us where to focus our sight
In the enterprise risk management fight

[Outro]
When identified risks demand their due
Severity assessment guides us through
The magnitude and probability dance
Gives enterprise risk its fighting chance

← 1 Principle 10: Identifies Risk | 3 Principle 12: Prioritizes Risks →