With to regard driving there are many examples where we accept risk that is not completely logical based on statistics: using mobile phones while driving, putting on make up while driving, speeding, not wearing seat belts etc. etc. However, imagine you are driving on the motorway in the fast lane. Suddenly a car on your left unpredictably pulls out in front of you. How do you react? Is it to immediately back off to a safe stopping distance in order to control the sudden increase in the risk of an accident? We may all like to think so. Or is it to perhaps to flash your lights, to raise a fist, to start swearing, or even to get closer to the vehicle in front to really make sure they have got the clear message of your unhappiness about how they are driving. Like it or not we are designed to be emotional.

The proposition is that in business we need a logical and systematic approach that enables us: to be able to understand where we have risk, to be able to quantify those risks, to identify methods for reducing risk, in order to ultimately be able to make an informed decision on what action to take.

In many industries there are mature risk management processes. These include industries such as: the Nuclear Industry, the Oil & Gas Industry, the Chemical Industry, & the Transport Industry including Aerospace. The reason for this is that in these industries a large component of the business involves large risks involving Health, Safety or the Environment. The focus on risk management has developed to a mature level because of the unfortunate occurrence of some horrific accidents over the years. A good example from the Oil Sector is the Piper Alpha disaster in 1988.