In line with the ISO 31000 standards, a risk assessment methodology is part of the risk management process and uses a combination of:
- analysis, and
- evaluation techniques.
With the increasing availability of big data and sophisticated software analytics, such as machine learning, modern risk assessment are automated and easy to use for people who have limited technical knowledge on risk management. The outcome of risk assessment will become more accurate due to the access to large-size samples. For example, Deloitte has developed a continuous risk assessment tool as an enhancement of its traditional risk assessment processes through the inclusion of quantitative metrics i.e. key risk indicators, to better assess the risk universe. ORM has moved away from traditional risk assessment towards risk-based strategic decision making.
Our Market Researcher, Jiaqi Sun, has put together research to provide an overview of commonly-used risk assessment approaches and processes to manage hazard, operational and strategic risks. Over the next series of blogs, we will drill down into:
Risk management is usually the responsibility of risk managers/professionals in separate business units working with different risk management systems. This contributes to a lack of risk information sharing and a lack of understanding of the organisation’s key risks, which prevents optimum results from being achieved. Although business units may function in isolation, risks certainly do not.
As a corporate leader, global competition and razor-thin margins can pressure your employer to make financial decisions that conflict with health and safety standards. As health and safety professionals, it can become tiresome, having to constantly justify necessary spend. Let’s be honest – we know the safety training our company needs, and perhaps in the interests of getting that training, we’ll opt for the ‘discount’ option in order to please our employers and their bottom lines while still meeting our HSE legal requirements.
In reality, however, current safety statistics show that improving work site safety practices reduces both direct and indirect employee costs in the long run, saving money and even the company itself. Here’s how paying cheap now can cost you dearly later.
You might say, ‘I’m just a safety officer – not a leader’. ALL safety professionals are leaders, as you are responsible for guiding your entire organisation when it comes to adopting, implementing and following sound safety practices.
And as a leader, the following nine qualities are key to fulfilling your role successfully.