We think about functions of danger management utilizing a historic example of techniques to estimate of the threat of sea pirate's attacks, the so-called Bernoulli's and Columbus' methods. 250 years ago, Bernoulli discovered a way to lower the insurance coverage tariff at insurance coverage of merchant. Utilizing low tariff, he drew the customers, and due to the huge variety of customers he might attain enough precision in the estimation of possibility of loss of the goods or the vessel, and with the low insurance coverage tariff he might get excellent revenue. 250 years previously Columbus began browsing away to India. For his ships, along with for the merchant ships of Bernoulli's time, the primary hazard was the pirates. The possibility of an attack of pirates was high, however, whether it was needed for Columbus to understand the value of this likelihood? Columbus geared up the ships with rectangle-shaped sails of the optimum location. He lost the maneuverability, however, this basically increased speed of caravan. On the 2nd day of exploration a pirate cruising vessel approached Columbus' ships, nevertheless, some days later, it dragged hopelessly. It is essential to see, that the pirate ships had higher maneuverability than the trading ones and high speed. Their sails were universal, adjusted to combat male oeuvre, and had no such big location as sails of Columbus' ships. The provided realities from history highlight 2 methods to the danger estimate. Technique (Bernoulli) presumes that procedure, which failure threat is required to approximate, cannot be adjusted or it is not managed knowingly.You can find further information on https://www.qorusdocs.com/document-generation-software. 2nd technique (Columbus) applies to procedures which failure danger needs to be decreased ad infinitum by suitable modification. Bernoulli's method does not require a financial investment of loan and efforts to the improvement of procedure, which failure danger is approximated. It is the passive monetary method. Irreversible upgrading takes place because a brand-new procedure is created instead of not successful procedure.