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Risk is defined as the effect of uncertainty on objectives.Loss prevention.
Process of Risk Management
Listed below are the six (6) key steps in the risk management process:
1. Risk Context
2. Risk Identification
The process of finding and describing the risks, within the context of the organization.
Listed below are some of the methods for risk identification:
Listed below are the four types of risks:
C Risk Register
Listed below are the key elements of a risk register:
3. Risk Analysis
The process of understanding the nature, sources and causes of risks that have been identified.
A. Risk Equations
B. Consequence & Likelihood Matrices
4. Risk Evaluation
The process of comparing risk analysis results with risk criteria in order to determine whether or not a specified level of risk is acceptable or tolerable.
A. Risk Appetite and Tolerance
B. Risk Scoring & Ranking Scheme
C. Risk Matrix Correlations
Included below is a summary of some of the risk correlations.
5. Risk Treatments & Controls
The process of modifying the risks.
ISO 31000:2009 gives a list in order of preference on how to deal with risks - treatment and controls:
6. Risk Monitoring & Review
The process of checking and critically observing the risk register and risk plan.
Fig. Risk-based decision making is at the heart of asset management and this requires mindful consideration of the relationship between the probability of failure (PoF) and the consequences of failure (CoF). The complexities of these correlations can sometimes be captured on a risk matrix.
Fig. Four type of risk management: Enterprise, Asset, Project and Operations.
Fig. Different types of risk registers to capture enterprise risk, asset risk, project risk and operational risk.
Fig. The principles of ISO 55001 help to ensure that optimization is achieved through mindful balance and measured trade-offs between decision-making criteria.
Fig. Risk management is one of the many benefits of implementing an asset management system in accordance with the requirements of ISO 55001.
Fig. The risk spectrum extending along the P-F interval to illustrate the varying strategies in the Pre-P and Pre-F periods. For example, a shift from Time-Based Maintenance (TbM) to Condition-Based Maintenance (CbM).
Fig. I. Care is oblivious to the extraordinary events that can totally wipe out his assets and upset the delicate order of things, such as force majeure, acts of God (earthquakes, lightning storms, floods, fires, etc), lawsuits arising from slip-trip-and-fall injuries, environmental contamination, etc. He needs a risk register for his buildings so that he can get a line-of-sight on his risk management plan, prioritize work and keep a proper perspective on it all.
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