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The term risk can be defined as those factors that companies have little to no control of. Risk can further be described as a situation involving exposure to danger. The danger is the possibility of exposing someone or something of value to harm or loss. This definition also refers to the result of uncertainty in situations that can be avoided through pre-emptive action.
ReplyDeleteThe presence of risk in running a business is not at the absence of opportunity. Although risks are often thought of only as hazards, they can present significant opportunities and possibilities. Some of these possibilities include organisational innovation and an increase in competitive advantages which can lead to short and long-term profitability.
ISO 9001 is an international standardised quality management system that helps organisations to analyse, control and improve their internal systems, processes, protocols and policies in preparation for any potential risks that the business may face. ISO 9001 encourages and promotes risk based thinking in six areas, namely:
1. Leadership
2. Context
3. Operation
4. Planning
5. Performance monitoring
6. Improvement
ISO 50001 Internal Auditor Training