SYSTEM MODELS FOR RISK MANAGEMENT Risk

Risk Model - A framework of processes and activities concerned with identification and management of the system risks, arranged in a sequence of overlapping stages, and which acts as a common reference for communication and understanding.(Adapted from ISO/I EC 15288:2002)

The concept of risk and the various categories of risk have been described in Chapter 1. The subject of risk management is very large. Process risk management, while forming a subset of the overall topic, is in itself vast. It integrates scientific, engineering, behavioural and general management functions into a single framework, focusing on identification, assessment, treatment and control of risk.
Most people take a narrow view of process risk management, within the constraints of their area of specialization, or area of responsibility. From an organisation s perspective, it is not only necessary to take the broader view, but ensure that all the different organisational functions (production, engineering, procurement, product storage and distribution) gain an appreciation of the broad picture, and an in-depth understanding of risks in their respective areas.