Defining the outcomes of managing risk effectivley
The benefits of successfully managing risk may appear to be obvious. However, it is important that we understand the relationship between the guiding principles and successful outcomes in order to ensure that we have a framework to apply in future incidents.
According the BSI standards guidelines ISO31000 eight principles of effective risk management exist:
Framework and processes should be customised and proportionate.
Appropriate and timely involvement of stakeholders is necessary.
Structured and comprehensive approach is required.
Risk management is an integral part of all organisational activities.
Risk management anticipates, detects, acknowledges and responds to changes.
Risk management explicitly considers any limitations of available information.
Human and cultural factors influence all aspects of risk management.
Risk management is continually improved through learning and experience.
The first five principles provide guidance on how a risk management initiative should be designed, and principles six, seven and eight relate to the operation of the risk management initiative. These latter principles confirm that the best information available should be used; human and cultural factors should be considered; and the risk management arrangements should ensure continual improvement.
Consider the benefits to the emergency responding agencies, when emergency risk incidents are managed effectively.
What benefits can you list as a result of effective risk management? Given these advantages, why do some institutions and organisations still neglect to adopt systematic approaches to risk management?
Chapters 1 & 2 of:
Drennan L.T., McConnell A., and Stark A. (2015) Risk and Crisis Management in the Public Sector 2nd edition. Routledge Masters in Public Management
The British Standards Institute (2018) Risk Management - Guidelines [online] available from https://bsol.bsigroup.com/Bibliographic/BibliographicInfoData/000000000030315447