Operational Risk & Resilience (Hazards (Organisational - Internal…
Operational Risk & Resilience
There are three broad approaches for managing risk: Reduce the impact / Reduce the likelihood & Recover
Organisational - Internal processes
Customers: Incorrectly stating the specification of a product or service
Technology: Computer System Failures / Incorrect Equipment
Human Capital: Human Error / Incomplete Training
UK Health and Safety Executive (2017), a hazard is anything that may cause harm
Supply Chain: Incorrect items delivered by suppliers / Damaged deliveries to customers.
A hazard is an event that has the potential to result in unwanted consequences.
Organisations use a matrix to assess likelihood in order to standardise its evaluation across the
Organisations need to consider different areas of the operation that may be affected
Source of Risk
Potential to have a negative effect on the business
Combination of Impact & Likelihood
The chance that this is going to happen: Rare / likely or unlikely
Quantifying the impact requires the impact to be identified: financial / physical etc..