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Compliance is fundamentally about reducing stakeholder risk: risk to quality, risk to safety, risk to the environment, and ultimately risk to trust. To ameliorate these risks they follow a management of change (MOC) process to buy down risk. to ensure that the organization is not taking on too much risk. The level of risk provides a leading indication of the progress made in buying down risk as well as an

For example to: Engineers, risk is a hazard, Management, risk is about uncertainty on system objectives These different views of risk can lead to uncertainty concerning what assessment tools to use, how risks risk domains. risk registers. How would your risk program benefit from using a common risk framework?

individuals affected, the UK National Health Service (NHS) was hardest hit placing patients possibly at risk Cyber risk has the potential to affect compliance programs which are intended to keep: people, the environment Does your cyber risk assessment extend beyond covered processes or high consequence areas? Is the identification of cyber risks part of your overall risk management program? What step can you take to improve the management of cyber risk within your organization?

Risk registers are part of an effective risk program and used by companies to help communicate and manage risk. using different definitions for risk (i.e. hazard, effect, uncertainty, etc.) by advancing their risk programs beyond using simple risk register spreadsheets. within the risk registers.

It is common to find that compliance programs do not include adequate support for: Change management Risk This leaves companies vulnerable to unnecessary compliance risk. 3. In addition, compliance often now requires additional capabilities to support: risk based methods, evidence this moves the focus from complying to regulatory elements to achieve compliance outcomes driven by risk #ComplianceTheats #ManagementProcesses #Risk #OperationalExcellence

Safety regulations and guidelines across North America call out for the need to manage risk due to organizational Managing the following 5 (five) types of changes will help reduce risk during and after organizational Policy and Procedure Changes can effect the ability to manage risk during the organizational change. risk is applied. Plan-Do-Check-Act Questions: How well is your company managing risk during organizational changes?

between risk, uncertainty, and LEAN. Uncertainty is the breeding ground for risk, and risk, in turn, is the catalyst for waste. LEAN's Dual Approach: Margins and Risk Management LEAN offers a twofold strategy to address uncertainty analysis, and risk management unveils a path to rise above the effects of uncertainty: Engage LEAN principles uncertainties using a total value chain analysis Use margin to evaluate and buy-down reducible risk

This uncertainty contributes to the lack of motivation to act which is a significant cause for failing outcome and performance targets that requires continuous improvement and the effective management of risk As risk is never static continuous risk management is needed to keep companies operating between the lines in the presence of uncertainty. You need be aware of the dragon that is chasing you from behind as well as the the pot of gold that is

Hazards are a manifestation of uncertainty – hazards create the opportunity for risk. Hazards are a manifestation of uncertainty – hazards create the opportunity for risk. security: reliability and resilience, which are used to contend with he hazardous internet (i.e. the dragon of uncertainty.) A comprehensive risk/certainty strategy and plan ensures that uncertainty in all its forms is effectively

Productivity programs improve margin to contend with aleatory uncertainty (having to do with chance) It’s here that certainty programs are used to achieve compliance associated with buying-down risk that is reducible – those connected with epistemic uncertainty (lack of knowledge). Certainty programs create a second wing that truly balances corporate activities to keep businesses flying

Contending with operational uncertainty help organizations operate between the lines which protects the Scorecard Protecting the creation of value fundamentally is about contending with aleatory and epistemic uncertainty Aleatory uncertainty is handled by applying margins to cover losses that cannot be avoided or reduced Whereas, epistemic uncertainty is handled by means of compliance controls and measures to buy-down risk More uncertainty and risk is expected in the incubation and startup activities.

Risk Theory: Navigating Compliance in Uncertain Waters Risk Theory acknowledges that compliance is not It recognizes that businesses must be resilient and adaptable in the face of uncertainty and risk. Key Takeaway: Risk Theory encourages organizations to build effective risk measures to improve the probability that compliance outcomes will be achieved in the presence of uncertainty. Applying them can help navigate uncertainty, build trust, streamline processes, and achieve compliance