Includes bibliographical references and index.

pt. 1. An introduction to the crisis -- Healthy skepticism for risk management -- Risk management : a very short introduction to where we've been and where (we think) we are -- How do we know what works? -- pt. 2. Why it's broken -- The "four horsemen" of risk management : some (mostly) sincere attempts to prevent an apocalypse -- An ivory tower of Babel : fixing the confusion about risk -- The limits of expert knowledge : why we don't know what we think we know about uncertainty -- Worse than useless : the most popular risk assessment method and why it doesn't work -- Black swans, red herrings, and invisible dragons : overcoming conceptual obstacles to improved risk management -- Where even the quants go wrong : common and fundamental errors in quantitative models -- pt. 3. How to fix it -- The language of uncertain systems : the first step toward improved risk management -- The outward-looking modeler : adding empirical science to risk -- The risk community : intra- and extraorganizational issues of risk management. The Failure of Risk Management explains which risk analysis methods work, which don't, and how to tell the difference. The Failure of Risk Management discusses topics relevant to the management of any risk including: Financial Risks, Natural Disasters, Industrial Accidents, Product Safety, Technology Risks, Project Failures, Engineering Disasters, Pandemic Viruses, Computer Security, Fraud, Loss of Reputation, and Litigation.