As we observe events such as the Icelandic volcano crisis, we are reminded of the difficulty facing risk management and crisis management team members when examining potential incidents of risk to corporate plans and ultimately the achievement of business continuity plan provisions or objectives.
As Kevin Knight states in a recent article that he wrote and posted on the International Standards for Business, Government and Society (ISO) website, “….the cloud of ash from the Icelandic volcano and its subsequent blanketing of much of Europe is a classic example of a low probability, severe consequence event that tends to be overlooked by management…” We totally agree with Mr. Knight’s statement.
The whole lack of readiness and response plan effectiveness by so many companies to this event, may well cause you to wonder as to just how seriously, if at all, upper management participates in the planning and testing processes of disruption-related scenarios directly having a potential impact on their organization.
In his article, Mr. Knight clearly points out that risk is all about uncertainty or, more importantly, the effect of uncertainty on the achievement of objectives. On 15 November 2009, ISO published ISO 31000:2009, Risk Management – Principles and guidelines, to help industrial, commercial and public sector organizations to confidently address such risks.
We recommend you read Mr. Knight’s article to help you and your organization improve your capabilities to successfully mitigate similar ever-changing and developing risks that must be managed in an increasingly global economy with greater reliance on “just in time” delivery.
Please pass this information along to your organization’s business continuity and risk management and risk assessment team members.
Click here to read the full article.