Could iso 31000 Risk Management Guidelines have saved the Titanic
Introduction to Risk Management Guidelines ISO 31000
Transcript of Introduction to Risk Management Guidelines ISO 31000
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Ujwal RitwikCRSP, QEP, REM, LA ISO 45001/14001/9001/22000/50001
Kuwait Chapter
Introduction to Risk Management Guidelines ISO 31000
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Course Objectives
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Course Curriculum
Introduction
Foundational knowledge – Risk Management
ISO 31000 contents
Class quiz and Homework
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Preparation
Pre-read ?
Pre-questionnaire completed?
This is a training course, you would be required to take notes
Keep blank paper and pen ready and take class notes
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Why I am interested– A safety professional since 35 years
– Was interested in Management Systems as a student, as an engineer and when doing
Management Course
– Was influenced by authors like Peter Drucker, Edward Deming, Joseph Juran, Philip
Crosby, and Kaoru Ishikawa etc.
– Was a certified tutor for Quality Circles/TQM, a program popular in 1980s
– Came to actually participate implement ISO 9000 in 1996
– Got on road to ISO 14001 in 2000
– First hand implementation and auditing experience ISO 9001, ISO 14001, OHSAS
18001, and ISO 45001
– Administrator of IMS program in KNPC, the leader in ISO certifications in Kuwait
– I remain deeply interested in spreading what I learnedIntroduction to Risk Management ISO 31000 : Ujwal Ritwik
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Do we want development of society, availability of convenience technology and cheaper goods and services?
Opening question
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Are these possible without additional risk?
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Foundation
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Hazard vs. risk
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Classical definition of safety risk
Risk = probability (likelihood) x consequences
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Safety risk matrix
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Classical definition of financial risk
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This is a new definition of risk
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This is a new definition of risk
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Risk explained
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Figure adapted from slides by Prof. G. Motet (INSA Toulouse)
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Risk explained
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Figure adapted from slides by Prof. G. Motet (INSA Toulouse)
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Risk explained
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Figure adapted from slides by Prof. G. Motet (INSA Toulouse)
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Importance of effective risk management
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There is a cost to risk control
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Risk and Opportunities
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Black swan event
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
The term “black swan” was used in 16th
century discussions of impossibility (all swans known to Europeans were white).
Explorers arriving in Australia discovered a species of swan that is black.
The term is now used to refer to events that occur though they had been thought to be impossible.
Characteristics of a black swan event:• an outlier• lies outside the realm of regular expectations• nothing in the past can convincingly point to its possibility• carries an extreme impact
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Purpose of risk management
• creation and protection of value
• improve performance
• encourages innovation and
• support the achievement of objectives
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Quiz 1
1. Financial risk and safety risk are different but can be dealt similar way
a) true b) false
2. With good risk management we can win lottery
a) true b) false
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ISO 31000 Contents
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Components of ISO 31000
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Principles of RM
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RM Framework
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Process
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Risk treatment options
The purpose of risk treatment is to select and implement options for addressing risk.
May involve one or more of the following:
— avoiding the risk;
— taking the risk in order to pursue an opportunity;
— removing the risk source;
— changing the likelihood;
— changing the consequences;
— sharing the risk (e.g. through contracts, buying insurance);
— retaining the risk by informed decision.
Risk Treatment
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Risk Assessment/Management Techniques(IEC 31010)
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A non-certifiable guideline
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ISO/TC 262 ‘Risk Management’
ISO/TC 262 has responsibility for the below standards:
• ISO 31000 -- Risk management - Guidelines
• IEC 31010 -- Risk management -- Risk assessment techniques
• ISO 31022 -- Risk management -- Guidelines for the management of legal risk
• ISO 31030 -- Managing travel risks -- Guidance for organizations
• ISO 31050 -- Guidance for managing risks to enhance resilience
• ISO 31070 and ISO 31073 -- Terminology for risk management
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Quiz 2
1. In ISO 31000 there are five pillars of risk management
a) true b) false
2. In ISO 31000 the risk assessment process has four steps
a) true b) false
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Further Help
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Introduction to Risk Management ISO 31000 : Ujwal Ritwik
https://www.iso.org/obp/ui#iso:std:iso:31000:ed-2:v1:en
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ISO 31000 on ISO Website
https://www.iso.org/news/ref2263.html
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Conclusion
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What did we do?
• Foundational knowledge – Risk Management definition, concept, safety and financial risks, use of a RM program
• ISO 31000 contents – 3 pillars of RM, the 8 principles of RM, 6 components of RM framework and 4 step RM process
• Class quiz and Homework
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