Axes¶
- Awareness Type
- Scope Type
Awareness Type¶
| Type | Fancy Name | Cause | Modellable | Compensation expected |
|---|---|---|---|---|
| Known known | Probabilistic risk/ Aleatoric Risk | - Randomness in process - Measurement errors | ❌ | ✅ |
| Unknown known | Hidden knowledge/ Latent Risk | - Model misspecification - Did not incorporate into model - Maybe others know but you don’t know | ✅ Validation Scenario planning | ✅ Comparing to benchmark |
| Known unknown | Epistemic Risk | Insufficient data | ✅ Further research | ❌ |
| Unknown unknown | Uncertainty/ Ontological risk/ Black swan | Completely unexpected/unforeseeable events | ✅ Further research | ❌ |
Scope Type¶
| Type | Minimizable for Action if not modelled | |
|---|---|---|
| Systematic | - External/Macro - Sensitivity to global/market fluctuations | ❌ |
| Unsystematic | - Internal/Micro - Individual factors | ✅ through diversification (portfolio) |
2026-03-15