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- Integrated and convergent risk approaches need some discussion. Are they so different? And what about the good old Enterprise Risk…
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Today, more than ever, planners and decision makers are held accountable for outcomes often appearing to be beyond their control, generated by decisions made by others, which were made in different times and socio-economic, industrial and legal environments.
Complex and interdependent systems are difficult to grasp and understand.
Business systems have become overwhelmingly complex and interdependent and it is often difficult to gain clear understanding of their elements and operating conditions. However, decision makers can take better decisions, justify them, defend their selections and positions only if they clearly understand their systems and can properly understand their 360-degrees risk environment.
If examples 1,2 make you smile in disbelief, remember, they are real-life examples.
The architecture of hazard and risk registers is vital to ensure reasonable and reliable results of a risk assessment.
In the last two decades Riskope has honed the techniques necessary to model complex and interdependent business systems, compile well engineered hazard and risk register databases for each and every study, would it be a mining operation, a power generating system, a logistic network, commercial wharves, etc. Well before it became a ISO code (55000) and a buzz-word, we were preparing asset management reports for our clients, as subset of the overall 360-big-picture risk assessments. The complete procedure constitutes the core of ORE (Optimum Risk Estimates ©Riskope, also, of course, ISO 31000 principles compliant), the proprietary application that Riskope deploys for all clients requesting a holistic risk assessment and decision making support, world-wide.
Riskope recognized very early that hazard and risk register databases have to be drillable so that the results of a risk assessment are displayed in customizable dashboards, bringing to decision makers the information they need. Rational and sensible decision-making is indeed the ultimate goal of any risk assessment, and the goal is missed if the required information cannot be brought forward in the best possible way. Thanks to a rational ORE Enterprise Risk Management (ERM) plan it is possible to prioritize and sustainably mitigate hazards and their resulting risks.
Asset Management has recently (2014) been transformed by ISO from an isolated activity (BS PAS 55) to an activity guided by the international risk management system – ISO 31000:2009, confirming the validity of Riskope’s procedures. ERM (Enterprise Risk Management) requires a good understanding of the assets nature, location, hazard exposure, failure consequences. Enterprise Asset Management can supply at least part of these vital data to ERM, hence a bi-directional synergy.
Asset Management plans can be heavy and time consuming, a daunting process.
One problem with the preparation of an Asset Management plan is that it can be extremely heavy and time consuming. We often see smaller companies or communities abort their endeavour because of lack of funding, support, and/or stop after the inventory believing they have completed the tasks.
ORE can bring a solution to all these situations by understanding the different trade-offs. ORE relies on a Business Intelligence (BI) application performing the front-end and post-processing data management and analysis. As ORE is entirely customizable, the nature and extent of the BI’s activities depend on the clients decisions. It is perfectly possible for the client to ask the BI application be linked to all their extant files (loss control, third parties invoices for services, maintenance, utilities, accounting, etc.) so that the BI actually supports building the system’s anathomy by fetching the appropriate information.
With the BI application analytic capabilities ORE can model “the inside” of the system, not only depict a superficial image of it.
Riskope recently delivered a course at the Whistler Conference Center (B.C., Canada) focusing on the AM/RM synergy allowing utilities and municipalities to plan for infrastructure renewal (and long term life) in a way that proactively mitigates risks while protecting financial sustainability.
All Riskope activities, applications are of course compatible with the principles of ISO codes including ISO 22301:2012 Business Continuity Planning (BCP) and Disaster Resumption Planning (DRP), crisis management plans and communication plans delineated.
Riskope’s proprietary Optimum Risk Estimates (ORE) allows to enhance governance and leadership, transforming threats in competitive opportunities by having a clearer understanding of the risk landscape of a corporation . During a recent presentation in Nagoya (ISBM014) Riskope showed how ORE allows risk portfolios to be split into:
Intolerable and unmanageable risks are those that require a strategic shift.
Manageable risks can be dealt with tactical measures if they are intolerable.
Tagged with: . Unmanageable Risks, 360-degrees risk environment, Asset Management, BS PAS 55, Business Continuity Planning (BCP), Business Intelligence, decision making, Disaster Resumption Planning (DRP), interdependent systems, ISO 22301:2012, ISO 31000, ISO 55000, manageable risks, Risk Assessment, risk registers