Articles tagged Risk based thinking

Guest Post by Bill Pomfret (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

Just how safe is “safe”? Should working in a chemical plant have the same level of risk as skydiving (which kills about 40 people per year in the U.S.A Should working in a plant be as safe as driving your car? Or should it be as safe as flying in a plane, which is safer than driving a car by two orders of magnitude?

While the term FAR may be simple to understand and may represent a useful yardstick, many companies, especially in the U.S., are unwilling to put such targets in writing. Imagine walking into company XYZ’s plush world headquarters office and on the wall in the reception area is a sign that reads, “We at XYZ consider it tolerable to kill 4 people per 100-million-man hours.” The lawyers would have a field day! However, as we shall see, some organizations have established such quantified risk targets.

The critical success factors for ISO 9001:2015 RBT are much like Six Sigma and lean.   Our hard lessons learned over the last dozen years migrating organizations from quality to ERM include: [Read more…]

We get this question weekly and sometimes daily it seems.

Why?  ISO has not defined Risk Based Thinking?  And, this is a hugely important question because ISO has elevated RBT to the same level as PDCA and Process in the Final Draft International Standard (FDIS) of ISO 9001:2015.

One of the things we know is the marketplace hates a vacuum.  Someone will develop a product or service to fill in the vacuum.  This is exactly what we did with RBT. [Read more…]

Guest Post by Ed Perkins (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

Risk-based decision making is employed to implement risk management.

But how is this implemented? In this article, we will look at the process of making “risk-based” decisions.

Risk management is a process that involves several activities: [Read more…]