Technology Assessments and Effective Risk Management: A Plea for More Reflection and Rationality

It is a common misconception in risk management, from classical purely quantitative risk assessments as being coined in banking to qualitative approaches to evaluating new technologies such as AI, and hybrids like scenario techniques in the middle, that a certain toolkit and a specific set of methods serve as a panacea for all challenges risk managers may face. Given the lurking pitfalls in this area of risk management, the call for an avoidance strategy cannot be ignored. In this article, we outline six guidelines that should be followed on the way to more decision-making competency in risk management.