Risk Management for Organizational Sustainability

There are many definitions of risk. Most of the definitions focus on hazards, harm, and harmful events. Only one of these definitions is presented from the perspective of an organization. This definition covers not only something that might happen, but also how it will affect an organizatoin’s ability to meet its objectives in an uncertain world. No longer will risk be confined to harmful events.

Instead, risk and its consequences could be positive (i.e. the upside of risk) or negative (downside of risk). Risk is always focused on the organization’s objectives. Opportunities and threats represent the ‘effect of uncertainty. According to the International Organization for Standardization (ISO), this perspective (found in ISO 31000:2018) has been accepted the standard-setting entities in 50 countries representing more than 80% of the world’s population.