Group items tagged

Risk management is the identification, assessment, and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives, whether positive or negative) followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities. Risks can come from uncertainty in financial markets, threats from project failures (at any phase in design, development, production, or sustainment life-cycles), legal liabilities, credit risk, accidents, natural causes and disasters as well as deliberate attack from an adversary, or events of uncertain or unpredictable root-cause. Several risk management standards have been developed including the Project Management Institute, the National Institute of Standards and Technology, actuarial societies, and ISO standards. Methods, definitions and goals vary widely according to whether the risk management method is in the context of project management, security, engineering, industrial processes, financial portfolios, actuarial assessments, or public health and safety. The strategies to manage threats (uncertainties with negative consequences) typically include transferring the threat to another party, avoiding the threat, reducing the negative effect or probability of the threat, or even accepting some or all of the potential or actual consequences of a particular threat, and the opposites for opportunities (uncertain future states with benefits). Certain aspects of many of the risk management standards have come under criticism for having no measurable improvement on risk, whether the confidence in estimates and decisions seem to increase. For example, it has been shown that one in six IT projects becomes a 'Black Swan', with cost overruns of 200% on average, and schedule overruns of 70%. Introduction A widely used vocabulary for risk management is defined by ISO Guide 73, "Risk management. Vocab

The above is the theme from a Toronto Glob editorial, see the ice storm: Why you want the lights to go out, sometimes in the piece they call attention to the fact that you can't mitigate every risk.  The costs to do so would be too high.  Thus, the focus on risk management: Dyman & Associates Risk Management Projects: Cyber Security "What is risk? You can look here; it is the odds of suffering a loss in the future. It is a cost. And what about the reduction or elimination of that risk? Also a cost. In deciding whether to pay the price, utilities - and all of us - end up having to weigh three factors: the size of the possible damage, the likelihood of its occurrence, and the price of mitigation." Risk management will become a greater part of the discussion as we move forward and the warming climate starts to impact our communities in varying ways.  This will be a good discussion for communities to have.  One way to reduce risk is to disperse it in the entire community (whole community).  If individuals are better prepared than the costs for organizations can be lessened, and costs of single entity preparedness reduced. Check out the post right here…