First edition. | Hoboken, NJ : Wiley, 2022. | Includes bibliographical references and index. | Summary: “As stated by ISO 31000 “organizations of all types and sizes face internal and external factors and influences that make it uncertain whether and when they will achieve their objectives. The effect this uncertainty has on organization’s objectives is a risk. All activities of an organization involve risk”. ISO, together with the International Trade Centre and the United Nations Industrial Development Organization published a specific guide about the importance of the implementation of sound risk management practices in small and mid enterprises. Risk management is an integral part of all organizational processes and of decision making. It should be systematic, structured and timely. It also should be based on the best available information and tailored. It should consider human and cultural factors (“soft” factors) together with technical and organizational factors (“hard” factors).”– Provided by publisher.Identifiers: LCCN 2021003284 (print) | LCCN 2021003285 (ebook) | ISBN 9781119523833 (hardback) | ISBN 9781119523826 (adobe pdf) | ISBN 9781119523673 (epub) | ISBN 9781119523857 (obook)
Subjects: LCSH: Risk management.
Classification: LCC HD61 .F49 2022 (print) | LCC HD61 (ebook) | DDC 658.15/5–dc23
LC record available at https://lccn.loc.gov/2021003284 LC ebook record available at https://lccn.loc.gov/2021003285
Cover Design: Wiley
Cover Image: © Nikolay_Popov/iStockphoto
To my wife Sonia, with whom, day by day and together, I always reach new important goals. Thank you for your support, patience and constant love, witnessed by the wonderful family we have.
Luca Fiorentini
List of Figures
Figure 1 Descent from Col du Chardonnet. Is it safe? Source: Luca Marmo archive photo.
Figure 2 Bas‐relief depicting the god Kairos.
Figure 3 The epistemological meaning of security.
Figure 4 Swiss Cheese Model. Source: Reason, J., 1990.
Figure 5 Top five global risks in terms of likelihood (2007–2020). Source: World Economic Forum, 2020.
Figure 6 Top five global risks in terms of impact (2007–2020). Source: World Economic Forum, 2020.
Figure 7 Different perspectives on risk.
Figure 8 Definition of the scope of risk management.
Figure 9 Relationship between principles, framework, and risk management process.
Figure 10 The principles of RM according to ISO 31000.
Figure 11 The RM framework.
Figure 12 Components of a risk management framework.
Figure 13 Risk management framework.
Figure 14 Leadership and commitment.
Figure 15 Internal and external context.
Figure 16 Identify the requirements related to risk management.
Figure 17 Implementing the risk management framework.
Figure 18 Scheme of the risk management process according to ISO 31000.
Figure 19 Relationship between the RM principles, framework, and process.
Figure 20 Improving the risk management framework.
Figure 21 The risk assessment phase in the context of the RM process.
Figure 22 Level of risk.
Figure 23 Frequency analysis and probability estimation.
Figure 24 Risk acceptability and tolerability thresholds.
Figure 25 Example of a risk matrix with level of acceptability regions.
Figure 26 Prioritization of risk given impact and liklihood.
Figure 27 Risk prioritization and the risk matrix.
Figure 28 Matrix example for qualitative ALARP analysis.
Figure 29 Achieving balance in risk reduction.
Figure 30 Risk treatment activities.
Figure 31 Residual risk.
Figure 32 Risk management process continuous improvement.
