While conventional risk management approaches work well when all risks are foreseeable, the increased prevalence of complex and uncertain environments has led to the need for scalable, fit-for-purpose management solutions.
Conventional risk management approaches such as ISO 31000 are limited in their guidance on controlling unpredictable risks.
There are many classes of unpredictable risk, including:
- Unknown risks
- Black Swans
- Rogue Waves
Another challenge for conventional risk management systems is that the emphasis tends to be on identifying, measuring and treating specific risks rather than establishing internal controls to address areas of weakness and improve the resilience of systems faced with unpredictable risks.
Conventional risk management models and standards should also be rigorously assessed to ensure they are tailored to specific projects and applications, rather than being applied in a ‘one-size-fits-all’ method.
Emerging approaches to risk management include:
The content on this page was primarily sourced from:
- Webinar titled ‘Perspectives on Risk: Engineers, frameworks and new ways of thinking’, delivered to REBOK Community on 29 May 2018 by Warren Black, Principal and Founder, Complexus
Edited by Nadine Cranenburgh