Two recently published ISO standards on risk management have just been joined by a third on risk assessment techniques. Developed jointly by ISO and its partner the International Electrotechnical Commission (IEC), the publications provide organisations with a well-stocked toolbox for tackling situations that could affect the achievement of their objectives.
Risks affecting organisations may have consequences in terms of societal, environmental, technological, safety and security outcomes; commercial, financial and economic disciplines, as well as social, cultural and political reputation impacts. When risks occur, organisations always have to ask the question: "Is the level of risk tolerable or acceptable, and does it require further treatment?”
Risk assessment is an integral part of risk management which provides a structured process for organisations to identify how objectives may be affected. It is used to analyse the risk in terms of consequences and their probabilities, before the organisation decides on further treatment, if required.
Risk assessment provides decision-makers and responsible parties with an improved understanding of risks that could affect achievement of objectives, as well as of the adequacy and effectiveness of controls already in place. The standard provides a basis for decision about the most appropriate approach to be used to treat particular risks and to select between options.
The new publication, ISO/IEC 31010:2009 has been written to assist organisations in implementing the risk management principles and guidelines provided by the recently published ISO 31000:2009, itself complemented by ISO Guide 73:2009 on risk management vocabulary. The latest standard deals with: risk assessment concepts, risk assessment process and selection of risk assessment techniques. It reflects current good practice and answers numerous questions including: what can happen and why, what are the consequences, what is the probability of their future occurrence, and are there any factors that mitigate the consequences of the risk or that reduce the probability of the risk?
Eric Mahy, Project leader of the standard commented, "ISO/IEC 31010 has been developed for application by both the risk management novice and the seasoned risk professional. It forms part of an integrated risk management structure of standards, developed with a view to providing a 'best practice' approach."
The application of a range of techniques is introduced, with specific references to other International Standards where the concept and application of techniques are described in greater detail. Risk assessment is not a stand-alone activity and should be fully integrated into the other components in the risk management process.
Paul Arkwright
Publisher
