Service Management System Context, Requirements and Scope
4 Risk and opportunity management 4.1 Risk and opportunity management strategy [Organization Name]’s strategy with respect to the high-level management of risk and opportunity is to broadly adopt the principles of the ISO31000 standard (Risk management – principles and guidelines) so that risk and opportunity management: • • • • • • • • • • •
Creates and protects value Is an integral part of all organizational processes Is part of decision-making Explicitly addresses uncertainty Is systematic, structured and timely Is based on the best available information Is tailored Takes human and cultural factors into account Is transparent and inclusive Is dynamic, iterative and responsive to change Facilitates continual improvement of the organization
These principles will also be applied to the management of risk and opportunity with respect to the business objectives of the organization.
4.2 Risk appetite The SMS is designed to address the major risks that are identified to [Organization Name]. In identifying, assessing and managing these risks there are a number of options open to the organization according to its appetite for risk. In general terms the organizations appetite for risk may be said to be Low / Moderate / High (delete as appropriate). • • •
Low: The strategy of the organization is to avoid risk where possible and to invest resources in mitigating residual risk through effective measures. Moderate: The strategy of the organization is to accept reasonable levels of risk whilst making some effort to ensure measures are in place to handle risks if they occur. High: The strategy of the organization is to accept significant levels of risk as an integral part of the business it is in, on the basis that the resulting rewards will be sufficient justification.
This level of risk appetite will be applied to the risk assessments that are carried out as part of the SMS and will determine the actions that need to be taken to mitigate risk to an acceptable degree.
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