The BIA’s Fatal Flaws – No. 3 Probability is Not Predictable

2017-09-11T18:29:34-05:00March 8th, 2016|

The next problem with the traditional BIA process is that even if the loss estimates are assumed to be perfectly accurate and are implicitly accepted by management, the very next question is always: “OK, if these are the losses we can expect, what is the likelihood that they will occur?” As soon as probability enters [...]