Risk management follows a prioritization process whereby the risks with the greatest loss (or impact) and the greatest probability of occurring are handled first, and risks with lower probability of occurrence and lower loss are handled at a later stage. Assessing overall risk can be difficult, and balancing resources used to mitigate between high and low risks can often be mishandled. Risk management can reduce cost in manpower and other resources while at the same time minimizing the negative impact of the risks.
We at evolve have hands-on experience in development and implementation of a risk management system separately, or as part of an entire Safety Management System.
We can help developing and implementing Risk management processes and systems to complete a management (PDCA) cycle. Thereby taking into account what The International Organization for Standardization (ISO) identifies as principles of risk management. Risk management should:
- Create value – resources expended to mitigate risk should be less than the consequence of inaction, or (as in value engineering), the gain should exceed the pain
- Be an integral part of organizational processes
- Be part of decision making process
- Explicitly address uncertainty and assumptions
- Be systematic and structured process
- Be based on the best available information
- Be tailorable
- Take human factors into account
- Be transparent and inclusive
- Be dynamic, iterative and responsive to change
- Be capable of continual improvement and enhancement
- Be continually or periodically re-assessed