This risks and opportunity management procedure can assist your business comply with AS/NZS ISO 9001, AS/NZS ISO 14001 and AS/NZS ISO 45001, Management Systems clauses:
A risk and opportunities management procedure is a document that outlines the steps an organization takes to identify, assess, and manage risks and opportunities.
The procedure details a systematic approach that is implemented by an organization to identify, assess, mitigate and capitalize on potential risks and opportunities that could impact their objectives and operations.
Risk and opportunity management is the proactive identification, assessment, and mitigation or exploitation of risks and opportunities. It is a continuous process that should be incorporated into an organization’s overall strategic and contingency planning processes.
Risk and opportunity management can help organizations achieve their objectives by:
Note: By identifying and responding to risks and opportunities, businesses can protect themselves from potential threats and take advantage of growth opportunities.
In basic terms:
There are many ways to identify risks and opportunities. The key is to think creatively and be open to different possibilities. For any business, the identification of risks and opportunities is a critical activity at both the strategic and operational levels.
It needs to include all significant sources of risk, including those beyond the business’s control. Quite simply, if a risk, opportunity or threat is not identified, there can be no strategy to manage it. The key objective of the identification step is not to create a difficult and lengthy list of all possible risks, but to identify all significant risks that could impact the business.
Risks and opportunities can be identified by:
Once identified, opportunities and risks should be recorded as part of the ‘context of the organization.’
A risk register can also be updated to reflect the risks mitigated and the actions to address risks and opportunities, ensuring a reduced likelihood of a negative outcome.
The best way is to be proactive. Some risks can be easy to manage and will present an opportunity for your business to grow. Others will be more difficult to manage and could present a serious threat to your business.
An organization’s approach to managing will vary depending on the size and type of business, the products or services it provides, and the sector in which it operates.
As mentioned, the most effective approach to is to adopt a systematic and proactive approach, and this should be embedded into the culture of the business. One of the best ways to manage or reduce risks is to have an effective documented procedure in place to follow.
The overall aim of is to ensure that capabilities and resources are engaged in a manner to mitigate risks and take advantage of opportunities. Similarly, if you can identify opportunities and take advantage of them before your competitors you will be ahead of the ‘game.’
This 12-page procedure can assist you in documenting the risk and opportunity processes, so you can:
