Certification in ISO 31000 Risk Management - ERM 31000 Training
Introduction to Risk Management Guidelines ISO 31000 · Black swan event Introduction to Risk...
Transcript of Introduction to Risk Management Guidelines ISO 31000 · Black swan event Introduction to Risk...
Ujwal RitwikCRSP, QEP, REM, LA ISO 45001/14001/9001/22000/50001
Kuwait Chapter
Introduction to Risk Management Guidelines ISO 31000
Course Objectives
Course Curriculum
Introduction
Foundational knowledge – Risk Management
ISO 31000 contents
Class quiz and Homework
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
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
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?
Foundation
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Hazard vs. risk
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Classical definition of safety risk
Risk = probability (likelihood) x consequences
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Safety risk matrix
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Classical definition of financial risk
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
This is a new definition of risk
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
This is a new definition of risk
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Risk explained
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Figure adapted from slides by Prof. G. Motet (INSA Toulouse)
Risk explained
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Figure adapted from slides by Prof. G. Motet (INSA Toulouse)
Risk explained
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Figure adapted from slides by Prof. G. Motet (INSA Toulouse)
Importance of effective risk management
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
There is a cost to risk control
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Risk and Opportunities
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
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
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Purpose of risk management
• creation and protection of value
• improve performance
• encourages innovation and
• support the achievement of objectives
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
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
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
ISO 31000 Contents
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Components of ISO 31000
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Principles of RM
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
RM Framework
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Process
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
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
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Risk Assessment/Management Techniques(IEC 31010)
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
A non-certifiable guideline
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
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
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
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
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Further Help
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
https://www.iso.org/obp/ui#iso:std:iso:31000:ed-2:v1:en
ISO 31000 on ISO Website
https://www.iso.org/news/ref2263.html
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Conclusion
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
Introduction to Risk Management ISO 31000 : Ujwal Ritwik
Introduction to Risk Management ISO 31000 : Ujwal Ritwik