In an earlier blog post, the idea of managing both quantity and quality of risk was introduced.
But what exactly is Risk Quality?
At the most simple level, risk quality can be indicated as the rate of risk per unit of activity.
Risk Quantity = Business Activity Level x Risk Quality
So the suggestion is that a risk management system should pay close attention to that rate of risk as well as the Quantity of risk. See Riskviews Post on risk quality for further discussion.
But the risk manager must notice that the risk quantity is not a single measure. Risk has many facets. If you concentrate on Quality as one number you will get something very different from what you expect.
For further discussion of this see The Law of Risk and Light