Risk Management ensures the identification, evaluation, and prioritization of your business risks to establish the necessary actions control, eliminate or mitigate the impact of unfortunate events following the guidelines of ISO 31000 risk management standard.
Whenever we try to achieve an objective, there’s always the chance that things will not go according to plan. The risk can be managed, by using a systematic approach to risk management, that will lead to the reduction of the uncertainty.
According to ISO 31000, risk is the “effect of uncertainty on objectives”, and an effect is a positive or negative deviation from what is expected. So, risk is the chance that there will be a positive or negative deviation from the objective we expect to achieve.
Risk combines the probability and potential severity of a potential event.
A high-risk event would have a high likelihood of occurring and a severe impact if it actually occurred.
ISO 31000 is a generic risk management standard. It was developed by ISO Technical Committee 262, Risk Management. The official name of the standard is ISO 31000:2018 Risk management - Guidelines.
ISO 31000 defines a set of guidelines – not requirements. These suggestions or guidelines are stated in the following sections:
4. Risk Management Principles
5. Risk Management Framework
6. Risk Management Process
ISO 31000 2018 can be used by any organization no matter what size it is or scope. It can be applied to:
Risk management, when properly implemented and applied, will drive your organization to:
Asset management is a set of coordinated activities, involving the balancing of costs, opportunities and risks against the desired performance of assets to achieve an organization’s objectives.
Asset management is the art and science of making the right decisions and optimizing the delivery of value. A common objective is to minimize the whole life cost of assets but there may be other critical factors such as risk or business continuity to be considered objectively in this decision making.