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- Keshav Ram Singhal
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Blog on 'Quality Concepts and ISO 9001: 2008 Awareness' at http://iso9001-2008awareness.blogspot.in

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Wednesday, October 16, 2019

Nature and impact of risk


Nature and impact of risk

Risks are basically threats that could stem from a variety of sources, including financial uncertainty, legal liabilities, strategic management errors, accidents and natural disasters. Risks can impact an organization in the short, medium and long term. Risks may relate to organization's processes, tactics and strategy. Strategy sets out the long-term objectives of an organization, and the strategic planning for an organization will typically be 3 or more years. Tactics define how an organization intends to achieve change. Tactical risks are typically associated with projects, acquisitions, mergers and development of products and services. Organization's processes are the routine QMS activities that are under the impact of risk. Risk impact is an estimate of the potential losses associated with an identified risk. It is a standard risk analysis practice to develop an estimate of probability and impact. Risk management is the process of identifying, assessing and controlling threats to an organization. Although ISO 9001:2015 QMS standard does not mandate a formal risk management, however the standard incorporates risk-based thinking in its requirements.

- Keshav Ram Singhal

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