Applying Risk-Based Thinking in an Organization

Applying Risk-Based Thinking in an Organization

 

1.   Applying risk-based thinking and managing risk in an organization should be a priority and a responsibility of the top management.

 

2.   Don't depend solely on employees to identify and manage risks. Top management must actively involve themselves in risk-based thinking.

 

3.   The organization should develop a formal and repeatable risk management process.

 

4.   The organization should ensure that employees involved in risk management are trained and competent.

 

5.   The risk management process must include the determination, assessment, and review of risks at planned intervals.

 

6.   The organization should make risk considerations a central focus of the management review of its quality management system.

 

7.   Reschedule the risk management team if there are conflicts among team members.

 

8.   Assign risk mitigation activities to those who have the authority to implement mitigation actions.

 

9.   It is better not to outsource risk management. Instead, make the organization's people competent in applying risk-based thinking and managing risks.

 

Best wishes,
Keshav Ram Singhal