The American Society of Safety Professionals (ASSP) has published an article that delves into the varying definitions of risk within organizations.
Different groups within an organization may define the specifics of risk in disparate ways – occupational safety and health practitioners see risks derived from hazards, and production and operational managers see risks coming from operations. Executives may take a broader view that includes financial and strategic risks to business objectives. Organizations must adopt an enterprise risk management perspective that brings these views together to mitigate risk, allowing them to be more agile and resilient.
The article also explores risk’s relationship to uncertainty, and offers tips on how organizations can manage and reduce uncertainty in order to offer a better understanding of risk.
Read more about the definitions of risk and how they can be further explored to help define an organization’s risk management capabilities in the ASSP article.