Incorporate judgments as well as data

Judgments are necessary to:

Determine VALUE of the achievement or losses to the achievement of the organization’s objectives. This requires judgment to determine the relative importance of the organization’s objectives.

Risks are about the future — what might happen, as opposed to issues that have already happened.

While there may or may not be data about the past, we know that there is no data about the future. Therefore, judgment is required in order to predict the future (specifically, estimate likelihoods of events happening) or, judge whether and how to extrapolate data about the past into the future.