Risk of False Demand
When organizations consider risk it is usually centric to mitigating sentinel events or Black Swans (Special Cause) and not usually focused on what is called common cause variation. By definition these special cause events have a low probability to predict because it is a random from an unusual occurrence and is unstable and unpredictable. Common cause or process variation is stable and predictable as it is part of the system which means we can identify and reduce variation which reduces risk. Continue reading
