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Every business operates in the presence of uncertainty. This uncertainty creates the opportunity for risk. Compliance programs buy down risk to ensure outcomes are achieved.

Intrinsic Risk These risks are inherent in the process and activities. These may be in the form of latent or active failure modes, gaps in capabilities, uncertainties in work Steps can then be taken to decrease the uncertainties or minimize or exploit the consequences to better Emerging risks can be classified as: Newly created risks Newly identified or noticed risks Changes to Periodic risk assessments are useful to update risk profiles to take into consideration emerging risks

Risk scores are commonly used to support risk-based decisions and are usually derived from a semi-quantitative Risk scores were not calibrated Risk scores were not calibrated and aligned with the risk attitude (appetite are no different from risk scores. Risk-based decisions due to their inherent uncertainty are in the category of ethical decisions that However, should the hazard remain and uncertainty persist then the decision to proceed becomes an ethical

These risks may include: worker safety, temporary impacts on other processes (including risk controls Risks introduced by the change – these are new risks or changes to existing risks that result after the All with the goal of assessing how uncertainty affects achieving program outcomes. This will properly constrain risk assessments along with resulting treatments to ensure that the certainty However, on its own, it is not enough to address uncertainty in achieving program outcomes.

Staying between the lines is focused on keeping risk out and certainty in. Staying ahead of risk is focused on advancing the probability of mission success. This is a dynamic and continuous endeavour to keep the dragons of uncertainty at bay and far enough away This is accomplished by contending with uncertainty using margins and buying down risk to levels needed Improvements are triggered by the presence of uncertainty between us and our objectives.

UPDATED - May 17, 2020 Knowing how to manage in the presence of uncertainty is a skill that is in short It starts by deciding to be proactive which is a countermeasure to reactive behaviors caused by uncertainty Presence of Uncertainty To increase the probability of  project and mission success we need to manage in the presence of uncertainty. So take the Proactive Certainty Challenge and fight the reactive effects of uncertainty.

landscape knowing which way is up is what helps keep organizations from falling outside the lines and risking Each component of GRC (Governance, Risk, and Compliance) functions like a gimbal oriented across the #GRC #Compliance #Risk

programs while sometimes necessary all too often end up removing value and expose companies to unnecessary risk As change can be a significant source of risk it is important that companies put in place an effective An effective change process acts as a layer of defense against exposure to risks caused by changes to Embedding a risk assessment into this process also ensures that risks are properly identified, evaluated Implementation implement change and risk response plans 5.

Identifying risks and reacting to problems when they occur uses our "Lizard Brain" which is fast and However, slowing down is not easy and that is one of the reasons why risk-based thinking is hard to do The following steps help to make sure that we use our whole brain when contending with uncertainties: Separate risk identification (fast brain) from risk analysis and assessment (slow brain) Beware of cognitive biases such as: optimism, confirmation, anchoring, ostrich effect, zero-risk etc.

The loss of trust is particularly at risk and as we know, trust takes time to earn and is quickly lost technology, culture, etc.) by the organization to achieve the desired outcomes Identify and evaluate risks

ISO 31000 changed this focus to "the effects of uncertainty on objectives." consideration of probabilities, however, it does move the analysis more on how objectives will be effected by uncertainty Instead, it allows risk to be used as an optimization strategy to increase the certainty of achieving The latter is what we call the, The Reactive Uncertainty Trap™. If you are an ethical, ambitious company and want to avoid, The Reactive Uncertainty Trap™ consider joining

are some industries were using LEAN for process improvement may end up exposing companies to: greater risk Fortunately, many companies in this sector already have the skills to effectively manage risk. They just need to apply these now to manage risk during LEAN improvements. What we now need is a similar management of change process to manage risk during LEAN improvements. The process industry has had decades of experience managing risk and so this is not new to them.