Risk Management Algorithm

The steps

1. Identify all named risks across the four pillars. Correctness (process risk), Complexity (handling-edge-case risk), Patience (premature-action risk), Resilience (single-point-of-failure risk).
2. Score each risk by probability × impact. Hold both factors as variables until measured — per Variable Principle: do not assume probabilities you have not estimated.
3. Apply Layer I.B Texas Grid analysis. What single failure would cascade into systemic collapse? That risk takes priority regardless of its probability.
4. Apply Pillar IV (Resilience). For each major risk, define the downgrade path. Per the framework: never fully dependent on any single vendor, platform, person, or assumption.
5. Establish observation per Layer I.F. What signals would warn of the risk materializing? Build instrumentation.
6. Build mitigation by Fibonacci. Foundation: most likely + most impactful first. Each subsequent mitigation informed by the prior two.
7. Document mitigations and their falsifiability conditions. The mitigation that cannot be tested cannot be trusted.
8. Review monthly. Risk profiles drift; the dynamic middle of risk-tolerance shifts with conditions.

Articles on this

No articles on this one yet.

From the GFunnel Methodology v5.1 by Cameron Garlick, licensed CC BY 4.0. Steps are reproduced word for word.