Risk is defined in ISO 31000 ISO 31000 is intended to be a family of standards relating to risk management codified by the International Organization for Standardization. The purpose of ISO 31000:2009 is to provide principles and generic guidelines on risk management. ISO 31000 seeks to provide a universally recognised paradigm for practitioners and companies employing risk as the effect of uncertainty on objectives (whether positive or negative). Risk management can therefore be considered the identification, assessment, and prioritization of risks Risk concerns the expected value of one or more results of one or more future events. Technically, the value of those results may be positive or negative. However, general usage tends focus only on potential harm that may arise from a future event, which may accrue either from incurring a cost or by failing to attain some benefit ("upside followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events[1] or to maximize the realization of opportunities. Risks can come from uncertainty in financial markets, project failures, legal liabilities, credit risk, accidents, natural causes and disasters as well as deliberate attacks from an adversary. Several risk management standards have been developed including the Project Management Institute The Project Management Institute is a non-profit professional organization for the project management profession with the purpose of advancing project management, the National Institute of Science and Technology The National Institute of Science and Technology is an engineering college in Pallur Hills, Orissa, India, 12 km from the city of Berhampur. It was started in 1996 by a few NRIs, some of whom belonged to Orissa. This institute was set up and is managed by the SM Charitable Educational Trust with the aim of promoting higher technical education, actuarial societies, and ISO standards.[2][3] Methods, definitions and goals vary widely according to whether the risk management method is in the context of project management, security, engineering, industrial processes, financial portfolios, actuarial assessments, or public health and safety.
The strategies to manage risk include transferring the risk to another party, avoiding the risk, reducing the negative effect of the risk, and accepting some or all of the consequences of a particular risk.
Certain aspects of many of the risk management standards have come under criticism for having no measurable improvement on risk even though the confidence in estimates and decisions increase.[1]
Contents |
USA Today
Ann H. Franke, who consults with colleges nationally on issues of risk management , said that "fortunately this is a very rare event," but she agreed that ...
and more »
