No one could have failed in recent weeks to either have noticed, or in some way be affected by, the shutdown of most of European airspace caused by the volcanic ash crisis.
Whether you have been travelling during the recent disruptions and caught abroad, wanting to procure vegetables or perishable goods from far-flung parts of the world, or simply waiting for a letter from a foreign country, the situation is sure to have impacted on your professional and personal life in some way.
With so many organisations now depending on global supply lines, it is perhaps surprising that not more organisations have taken into consideration how scenarios like the volcanic ash crisis could affect them.
Having read a recent article by the chair of the technical committee that originated the new International Standard for risk management (ISO 31000), Kevin Knight, puts the reasons for this failure down to boards and top management failing manage risk effectively.
Knight goes further to give an example of how United Parcel Service (UPS), an organisation with a strong culture of risk management at its heart, coped with the crisis and was able to still continue its operations, when other organisations were totally disabled by the crisis.
Clearly, risk is part of the everyday operations of many organisations. Without risk and risk-taking, there is never likely to be any reward or progress. But risk needs to be managed and minimised, so that opportunities can be exploited.
ISO 31000, the new International Standard for risk management, provides the framework, process and principles for the effective management of risk. ISO 31000 is different from other risk management frameworks, where the emphasis is shifted very much from the actual disaster or event, to dealing with the effects of the uncertainty on organisational objectives.
In combination with the other standards in the ISO 31000 family, all of which are available in the ISO 31000 Risk Management Kit, ISO 31000 enables organisations to comprehend the risk involved in achieving their goals and ensure they manage their risks so as to ensure a successful outcome, just like UPS.