The Cure to Risk Management Syndromes

The Cure to Risk Management Syndromes

Jun 30th, 2009

The cure to Risk Management Syndromes includes six points.

The cure to Risk Management Syndromes

  • In a well managed organization hazard specialists should define the hazards, their magnitude, and to a certain extent, with facilitation, the likelihood of a strike.
  • Then a Risk Manager will determine the risk posed by these hazards, after helping to evaluate probabilities and potential consequences of the hazards hitting the system. Finally he will deliver a risk estimation in a clear and transparent way. He will compare it to the organization’s explicit and quantitative tolerance threshold. A that point it will be possible to know which mitigations to implement, if any. Together with the client he will define a road map.

  • In a well managed organization a preliminary risk assessment (see the two points above) will allow to evaluate which risks are relevant and should be tackled. This will result from a comparison of the evaluated risks with the organization’s tolerance curve. That exercise has to be developed quantitatively and transparently in order to avoid biases of various nature.

  • In a well managed organization prestige, arrogance and self-praise will be kept at bay by unbiased, transparent evaluations.

  • A good RM-CM approach will ensure the balance of the mitigative measures.

  • No good mitigation can be implemented unless a serious RM approach weights the residual risks, and secondary effects.

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Category: Crisis management, Risk analysis, Risk management, Tolerance/Acceptability

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