Ujwal RitwikCRSP, QEP, REM, LA ISO 45001/14001/9001/22000/50001

Kuwait Chapter

Introduction to Risk Management Guidelines ISO 31000

Course Objectives

Course Curriculum

Introduction

Foundational knowledge – Risk Management

ISO 31000 contents

Class quiz and Homework

Preparation

Pre-read ?

Pre-questionnaire completed?

This is a training course, you would be required to take notes

Keep blank paper and pen ready and take class notes

Why I am interested– A safety professional since 35 years

– Was interested in Management Systems as a student, as an engineer and when doing

Management Course

– Was influenced by authors like Peter Drucker, Edward Deming, Joseph Juran, Philip

Crosby, and Kaoru Ishikawa etc.

– Was a certified tutor for Quality Circles/TQM, a program popular in 1980s

– Came to actually participate implement ISO 9000 in 1996

– Got on road to ISO 14001 in 2000

– First hand implementation and auditing experience ISO 9001, ISO 14001, OHSAS

18001, and ISO 45001

– Administrator of IMS program in KNPC, the leader in ISO certifications in Kuwait

– I remain deeply interested in spreading what I learnedIntroduction to Risk Management ISO 31000 : Ujwal Ritwik

Do we want development of society, availability of convenience technology and cheaper goods and services?

Opening question

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Are these possible without additional risk?

Foundation

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Hazard vs. risk

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Classical definition of safety risk

Risk = probability (likelihood) x consequences

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Safety risk matrix

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Classical definition of financial risk

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

This is a new definition of risk

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

This is a new definition of risk

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Risk explained

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Figure adapted from slides by Prof. G. Motet (INSA Toulouse)

Risk explained

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Figure adapted from slides by Prof. G. Motet (INSA Toulouse)

Risk explained

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Figure adapted from slides by Prof. G. Motet (INSA Toulouse)

Importance of effective risk management

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

There is a cost to risk control

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Risk and Opportunities

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Black swan event

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

The term “black swan” was used in 16th

century discussions of impossibility (all swans known to Europeans were white).

Explorers arriving in Australia discovered a species of swan that is black.

The term is now used to refer to events that occur though they had been thought to be impossible.

Characteristics of a black swan event:• an outlier• lies outside the realm of regular expectations• nothing in the past can convincingly point to its possibility• carries an extreme impact

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Purpose of risk management

• creation and protection of value

• improve performance

• encourages innovation and

• support the achievement of objectives

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Quiz 1

1. Financial risk and safety risk are different but can be dealt similar way

a) true b) false

2. With good risk management we can win lottery

a) true b) false

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

ISO 31000 Contents

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Components of ISO 31000

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Principles of RM

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

RM Framework

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Process

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Risk treatment options

The purpose of risk treatment is to select and implement options for addressing risk.

May involve one or more of the following:

— avoiding the risk;

— taking the risk in order to pursue an opportunity;

— removing the risk source;

— changing the likelihood;

— changing the consequences;

— sharing the risk (e.g. through contracts, buying insurance);

— retaining the risk by informed decision.

Risk Treatment

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Risk Assessment/Management Techniques(IEC 31010)

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

A non-certifiable guideline

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

ISO/TC 262 ‘Risk Management’

ISO/TC 262 has responsibility for the below standards:

• ISO 31000 -- Risk management - Guidelines

• IEC 31010 -- Risk management -- Risk assessment techniques

• ISO 31022 -- Risk management -- Guidelines for the management of legal risk

• ISO 31030 -- Managing travel risks -- Guidance for organizations

• ISO 31050 -- Guidance for managing risks to enhance resilience

• ISO 31070 and ISO 31073 -- Terminology for risk management

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Quiz 2

1. In ISO 31000 there are five pillars of risk management

a) true b) false

2. In ISO 31000 the risk assessment process has four steps

a) true b) false

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Further Help

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

https://www.iso.org/obp/ui#iso:std:iso:31000:ed-2:v1:en

ISO 31000 on ISO Website

https://www.iso.org/news/ref2263.html

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Conclusion

What did we do?

• Foundational knowledge – Risk Management definition, concept, safety and financial risks, use of a RM program

• ISO 31000 contents – 3 pillars of RM, the 8 principles of RM, 6 components of RM framework and 4 step RM process

• Class quiz and Homework

Introduction to Risk Management ISO 31000 : Ujwal Ritwik

Introduction to Risk Management ISO 31000 : Ujwal Ritwik