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A Framework for Risk Management
A Framework for Managing Risk
Making or supporting decisions involving product or system reliability is fraught with uncertainty. Is it reliable enough? Will failures occur prematurely? Are failures dangerous?
Uncertainty is risk.
In recent years more organizations and international standard bodies have focused on risk management. Identifying, analyzing, and mitigating uncertainty in a systematic manner.
There is not a set way for every organization to organize a risk management process. The ISO 31000 standard does describe a framework for the implementation of risk management within your organization.
The ISO 31000 Enterprise Risk Management Framework
Management commitment
As with any major initiative or program having senior management involvement is critical. The commitment is not only for approval of a program, it is for active discussion, review, assessments, and improvements.
A risk management program serves the board of directors and senior management as they make policy and major decisions. Their intimate involvement is essential in the creation and operation of the enterprise risk management system within the organization.
