Risk Assessment, Budgeting and Forecasting

Q&A with Sam Savage

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Sam Savage is the executive director of ProbabilityManagement.org, a nonprofit devoted to the communication and calculation of uncertainty—which is certainly a thing that many finance officers are dealing with. Sam is a consulting professor at Stanford University, and he may be best known for his book The Flaw of Averages: Why We Underestimate Risk in the Face of Uncertainty. Sam has also been a visiting professor at Northwestern University's Kellogg School of Business and the Naval Postgraduate School in Monterey.

He was also a fellow of the Judge Business School at the University of Cambridge. GFOA Senior Manager of Research Shayne Kavanagh spoke to him about the danger of basing plans on uncertain assumptions and gaining a better understanding of risk.