All organizations regardless if they are public or private, for profit or not for profit, large or small face uncertainty. Uncertainty results in risks. More organizations will face uncertainty in the design, implementation, and assurance of their Quality Management System (QMS), Environmental Management System (EMS), Information Security Management System (ISMS), and most ISO management systems. The critical organizational challenge over the next decade is how organizations will address and treat the risks that result from the uncertainty. ISO 31000:2018 was developed to address this growing uncertainty.
Volatility – Uncertainty – Complexity – Ambiguity
We live in a time of Volatility, Uncertainty, Complexity, and Ambiguity (VUCA). We call this VUCA time. There are many implications to the statement. In terms of ISO 31000:2018 and ISO 9001:2015, the concept of ‘uncertainty’ is integrated throughout the standards.
The concept of uncertainty is fundamental to ISO 31000:2018 and its supporting standards. The nature, extent, and degree of uncertainty to solve problems and to make accurate and reliable decisions are based on the availability of data and information.
Risk Based Problem Solving and Decision Making
Risk Based Problem Solving (RBPS) and Risk Based Decision Making (RBDM) are two risk management tools that can be used with ISO 31000 to address VUCA. RBPS and RBDM involve evaluating:
- Assumptions used in the analysis and decision.
- Inputs into the risk analysis.
- Process used to conduct the risk analysis.
- Different interpretations of the analysis, data, and information.
- Different understanding and application of the term ‘context.’
- Differing abilities among risk analysts.
- Different application of the methods for conducting the risk assessment.
- Lack of precision and variability in the results.
Greg Hutchins PE and CERM (503.233.101 & GregH@QualityPlusEngineering.com) is the founder of:
He is the evangelist behind Future of Quality: Risk®. He is currently working on the Future of Work and machine learning projects.