Value and risk

Risk and value are interrelated tasks {OGC, 2007 #813 p 5}. “Risk is defined by the treasury as uncertainty of outcome. ” “Value means ensuring that the right choices are made about obtaining the optimum balance of benefit in relation to cost and risk.” So value might be something quantifiable and calculable. And the OGC does calculate risk - I've even found spreadsheets for calculations, such at this and a guide to it.

But on the other hand, risk and value are balanced according to perceptions. I like this quote from Bernoulli that relates to function to cost

“The value of an item must not be based on its price but rather on the utility which it yields”

Bernoulli D. (1738)

The Institute of Value Management is helpful and comes with diagrams.