We are living in a world of uncertainty and the ranges of possible outcomes of many of the events we are facing are not known. What will the impact of generative artificial intelligence on society be, for example? Historical data and statistics cannot help us determine the likelihood of any particular outcome occurring when we are faced with uncertainty, so traditional risk management techniques such as stress testing will be of limited use in the circumstances; stress testing relies on the notion that we know the range of potential outcomes. Kathryn Kerle advocates storytelling and supplementing traditional approaches with reverse stress testing as useful techniques that can help us manage risk more effectively when dealing with uncertainty.
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