This book feels like a mirror to my professional life. Having worked in risk management for years, I’ve always found that many resources on the topic fall short of delivering a complete understanding. Yet, The Failure of Risk Management is different. It doesn’t shy away from confronting the flaws in popular methods, and that boldness kept me engaged.
I’ve had this book on my shelf for a while and even read it once before. Revisiting it now, with more experience under my belt, I find myself appreciating its insights even more. Hubbard’s critique of risk management practices is sharp—sometimes strident—but it serves as a wake-up call for anyone in the field. His patterns for addressing flawed thinking about risk are worth reflecting on.
The examples from events like the 2008 credit crisis and engineering disasters are powerful. They underscore just how catastrophic poor risk management can be. Hubbard doesn’t just critique; he offers solutions. His Applied Information Economics (AIE) framework is intriguing, and the use of proven methods from industries like nuclear power and exploratory oil drilling provides a practical edge.
While the book is thought-provoking, it can be dense at times. Some parts require a second read to fully digest, especially if you’re looking to apply the lessons directly to your work. That said, it’s inspired me to dive deeper into the risk domain and explore other resources Hubbard references.
This isn’t a feel-good book—it’s a challenge to improve. For those in IT, business, or academia who want to go beyond superficial risk assessments, this is a must-read. The Failure of Risk Management is a guide to rethinking how we approach uncertainty, and for that, I’ll be revisiting its lessons for years to come.