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Controllable risk can be controlled by decision maker, while in uncontrollable risk, the decision maker has no control on risk (controllable risk is called reactive risk, and uncontrollable risk is called chance risk).
We know of no more powerful investment for managing controllable risk.
Numerous risk factors for delirium are uncontrollable; however, nurses' pro re nata drug administration of sedatives may be a controllable risk factor.
"In addition to active and passive smoking, atmospheric pollution exposure is a highly prevalent and controllable risk factor for low birth-weight".
Early identification of patients who may be at increased risk for developing sepsis may facilitate the timely modification of controllable risk factors and potentially improve clinical outcomes.
Aside from these factors, there are several controllable risk factors.
Similar(47)
Does it make sense for some businesses to ignore or underestimate one of its greatest yet controllable risks, the risk of subjectivity and unconscious bias?
The distinction between controllable and non-controllable risk also has implications for CEO pay.
Controllable reporting risk is the risk of a restatement caused by the CEO's decision to misreport.
We assume that by initiating a clawback, the firm may change the CEO's reporting decision, thereby reducing the controllable reporting risk but not the non-controllable reporting risk.
Moreover, we posit that controllable reporting risk decreases when clawbacks are strong.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com