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.
Tagged with: assessment, economic, management, operational, sustainability, tolerance
Category: Crisis management, Risk analysis, Risk management, Tolerance/Acceptability