WHY WE NEED RISK-BASED THINKING?

WHY WE NEED RISK-BASED THINKING?

Please read my earlier articles:
(i) 'DETERMINING AND ADDRSSING RISKS AND OPPORTUNITIES'
(ii) 'A SIMPLE METHOD TO DETERMINE RISKS AND OPPORTUNITIES'.

Why we need risk-based thinking? A general question needs answer. Risk is an inherent part of daily life. Risk also depends on the fragilities and capacities in a system, which are often not manifested until there is a triggering event. Risk may lead to disaster. Risk may be a path to disaster if protective capabilities of the system cannot deal with the negative consequences of the event.



Risk is a dynamic concept as it changes over time as the vulnerabilities or weaknesses in the system or society changing in time. Risk is not static, constant but rather a dynamic term that is constantly adjusting to changing vulnerabilities, weaknesses and hazards.

Risk is a fundamental reflection of the normal life. We calculate and deal with risk in everyday life - wear safety belts to reduce the likelihood of injury, get vaccination to reduce the risk of illness. Life or any system without risk is generally neither possible nor conceivable. Our response to natural and environmental hazards is often influenced by our perception of risk. Sometimes we choose to take a risk, knowing the associated risk. For example, people choose to smoke or drink, knowing the risks associated to their health. Risk perception is influenced by past experience and knowledge. Understanding a risk allows us to make informed decision by weighing the risk of certain activity or process with the benefits or outcomes derived from that activity or process. Without factual information, or with misinformation, we are faced with making an uninformed decision.

Risk-based thinking thus helps us to understand risks through a systematic valuation of determining risks associated in each process or system.

- Keshav Ram Singhal


For details on the Training Handbook on 'ISO 9001:2015 QMS Awareness', please CLICK HERE.
For details on 'Checklist for ISO 9001:2015 QMS', please CLICK HERE.