The Difference Between Risk Management and Enterprise Risk Management

The Difference Between Risk Management and Enterprise Risk Management

The uncertainty concerning the future performance of a product or system is a risk to the customer and supplying organization. A product that fails too often or in an unsafe manner may require repair, replacement, or a recall.

A product’s performance including its reliability performance reflects on the organization that designs, builds, and sells the product. A poor reliability performance is no longer a risk to that individual product, rather it is a risk to the product line and organization as well.

Reliability professionals have long been involved with identifying and mitigating risks. The increased emphasis on enterprise risk management through standards such as ISO 31000 require reliability professionals to consider the larger risk management framework and how reliability related risks fit within the larger context.

Simple to Enterprise Risk Management

In Greg Hutchins book, ISO 31000 Enterprise Risk Management there is a table (page 34) that summaries the differences between risk management and enterprise risk management.