Risk in work unit business planning: This topic has a tutorial series for those New to this, and a separate introduction and summary for those who have Seen it all. (Topic index)

What is Risk Management? (Topic index)

Risk is not a mysterious hypothetical substance. Unlike radioactive waste, it does not require a management system. You should never ask how much of it there is. Risk is nothing other than the possibility that your world might not end up the way you meant it to be. To manage risk is to understand and act on the effects of uncertainty on objectives. ‘Objectives’ are the preferred outcomes of an activity. ‘Effects’ can be positive or negative. ‘Uncertainty’ includes all kinds of unknowns, including unknown unknowns. ‘Act on’ includes many kinds of response.

Discrete risk management processes within an enterprise (Topic index)

Risk management happens across the whole of any enterprise, whether or not it is formalised and explicit. A risk management process has a scope and objectives. There may be multiple discrete risk management processes across the enterprise. Any discrete risk management process needs to have a definite scope. Discrete and independent risk management processes are the work-horses within formal risk management, even if they are not recognised at all in ISO 31000 or COSO ERM.

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