4 Principles
- 4.1 Value creation
- 4.2 Integration
- 4.3 System approach
- 4.4 Adaptation to context
- 4.5 Stakeholder participation
- 4.6 Dynamism
- 4.7 Best information
- 4.8 Factors
- 4.9 Improvement
4.1 Value creation
Purpose, principles
The purpose of risk management is the creation and preservation of value. To achieve the objectives and improve overall performance, the principles listed in paragraphs 4.2 to 4.9 of this module and in clause 4 of the ISO 31000 standard must be scrupulously respected.
As the title of the standard indicates (Risk Management – Guidelines) the ISO 31000 standard does not contain requirementsexplicit or implicit need or expectation (see also ISO 9000, 3.1.2) and a company cannot be certified according to this standard. But as we saw in paragraph 1.3 the benefits can be substantial, not to say considerable.
You can check whether you have the presence of mind by answering the questions in the presence of mind test in annex 10. 
In the early 1970s, a project was proposed to Bill Hewlett, one of the founders of HP. It was a small handheld device capable of scientific calculations with ten digits of precision. The prototype was made of wood, with all buttons labeled. Bill Hewlett examined the functions, smiled and slipped the device into his shirt pocket. This would become the HP-35 calculator.
Imposing your will to seize an opportunity can pay off enormously, even when the market is unknown and the technology is not complete.
4.2 Integration
Integration, importance
Risk is everyone’s business
Integrating risk management into all company processes is a key objective.
All staff should be regularly made aware of the importance of taking risk into account in design, development, industrialization, production and operational support.
4.3 System approach
System approach, right decisions
The systemset of interacting processes (see also ISO 9000, 3.2.1) (structured and global) approach to risk management contributes to the achievement of objectives.
This approach is timely and comprehensive. It helps to define priorities and make the right decisions.
4.4 Adaptation to context
Tailor-based, proportionate
Risks cannot be considered outside of the context that gave rise to the risks. Paul Hopkins
Risk management is tailor-made based on the business context, priority objectives and available resources.
It is recommended that the effort to implement risk management be proportionate to the risk level in the company.
A piece of equipment was moved to make room for large new equipment. When planned maintenance was to begin on the first piece of equipment, the maintenance guy was unable to carry out his activities because the equipment was too close to the wall. He suggested creating a door in the wall to allow access to the equipment.
The only problem was that it was an exterior wall!
4.5 Stakeholder participation
Participation, stakeholder needs
The involvement and active participation of stakeholders enable transparent and inclusive risk management.
The knowledge, needs and expectations of stakeholders are better taken into account.
“In a typical business, if you have a meeting, no matter how important, there is always one party that is not represented: the customer. It is therefore very easy within the company to forget the customer.” Jeff Bezos.
To remedy this problem of forgetting, he got into the habit of placing an empty chair at each meeting.
Minute of relaxation. See the “Gold contract” joke.
4.6 Dynamism
Challenges, change
Risk management is a journey, not a destination
The internal and external challenges of the business context are constantly changing.
Risk management is dynamic, iterative and responsive to any change.
4.7 Best information
Information, communication
.
Risk management is based on the best information needed and the communication of the performance obtained.
Information is identified, stored, available, clear and accessible to stakeholders.
4.8 Factors
Huma, cultural factors, stakeholders
Human and cultural factors are taken into account at all stages of risk management.
The expectations, specificities and abilities of stakeholders are identified and integrated into activities to better achieve the objectives.
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Minute of relaxation. Cf. game: Supplier
4.9 Improvement
Continual improvement, considerations
The effectiveness of risk management is continually improved using the training of all staff and the experience of people with strong influence.
Improving risk management takes into account:
- available resources
- stakeholder contribution
- the effectiveness of the existing process
- potential opportunities
- performance monitoring and evaluation
Minute of relaxation. Cf. the “The quality engineer and the shepherd” joke.
Minute of relaxation. Cf. game: Effectiveness
The rest of the T 51v18 Risk management version 2018 training is accessible on this page.