What is Risk Management (ISO 20000)?
In ISO 20000, there is a clearly defined standard that details how an organisation should operate in the face of uncertainties and risks. Accordingly, risks are seen as one of the building elements of IT service management and have a major influence on the daily operation of the organisation. Risk Management - ISO 20000 is the standard requirement for a service-oriented IT organisation to calculate risk and manage potential incidents well before it impacts the business.
Risk and Opportunities Register (Risk Management) - ISO 20000 is a part of this detailed requirement. As a component of the strategy to build a visual workspace, the Risk and Opportunities Register allows the identification and assessment of uncertainties, risks, and opportunities. When a team can carry out this procedure early, it allows the organisation to apply their knowledge and resources to mitigate the danger and boost growth without utilising financial capital.
What are the General Documentation Requirements for the Risk and Opportunities Register?
Documentation of the data collected to analyse risk and opportunity is always ideal, but it may not happen in practice. However, the Risk and Opportunities Register cannot be skipped out. It is highly valuable since it logs information about both risks and opportunities. A risk and opportunities register makes it easier for the IT team and the rest of the organisation to record, track, manage, and evaluate the risks and opportunities. This best practice is a requirement for ISO 20000 compliance.
These documents encapsulate large amounts of data for in-depth assessment and evaluation. For each risk, the register has a set of general information such as:
● A detailed description of the risk
● Specification of risk type (business, project, stage)
● Probability of occurrence
● Severity of effect
● Measures taken to prevent, mitigate, or transfer the risk
● Individual or department responsible for managing the risk or risk owner
● Current status of the risk
● Quantitative values, if available or applicable
Documented Procedures of the Risk and Opportunities Register
Documenting data in the risk and opportunities register starts with a brief description of the risk or opportunity. Following this, the team's goals or conditions of satisfaction with this risk or opportunity need to be described. The probability of this goal being achieved is another valuable addition to this data.
Next, the team estimates the costs that the risk or opportunity will require. The benefits are weighed against the costs before finalising the budget. The team member responsible for the matter is given the ownership and guidance to herd the project. Finally, the sunset date or the date for the next actionable item is presented. This could easily be the date when the final resolution happens.
Benefits of the Risk and Opportunities Register (ISO 20000)
The benefits of maintaining a Risk and Opportunities Register (Risk Management) - ISO 20000 cannot be compressed into a few points. It influences numerous small parts of an organisation, leading to advantages that can be reaped in the most unexpected places. However, some benefits are too evident to go unmentioned.
Starting with the most appreciated benefit by the IT team, Risk and Opportunities Register is a tool that helps the team when they cannot handle a risk themselves. When the incident resolution is out of their capacity, the team needs to escalate it to a senior manager for action. Clear recording and other risk management processes eliminate guesswork from the equation in these scenarios.
A clear-cut structure to the process ensures that critical risks are monitored and evaluated by professionals with the right set of skills at the right time. When risk management is a proactive approach, early actions can nip potential problems even before it impacts the service. Also, the risk and operations register means that the service desk and management team can focus on what needs their attention instead of being swamped with alerts about every risk.
Easy to Catch the Trouble
Risk management, according to the ISO 20000, means that your project is receiving constant attention and is being tweaked each time. Merging well with any other standards and processes your organisation already has, proper risk management measures can give you a deeper understanding of regular performances and collect data for reviews and audits that are on the horizon.
More Evidence to Support Decision-Making
Having access to better, more reliable, and helpful data can enable you to make better decisions that are in the organisation's best interest. Being able to easily access risk and opportunity information through a register in real time is a time-saver. It means that decisions are made based on the latest data and are grounded in reality with respect to the company.
Facilitation of Communication
Risk management always involves open conversation. The various teams and members of an organisation need to come together to discuss the topics of concern and deal with potential risks or conflicts. Including everyone, even the suppliers, in the risk management discussions made by your organisation fosters a culture of equal appreciation.
At the same time, you also get valuable input on how to proceed with the business while maintaining ISO 20000 prescribed guidelines. In the risk management discussions, you can also look for opportunities to improve or build the organisation. With increased dialogue about the risks and opportunities that the company has, the members can work accordingly to bring out the best results.
Better Estimation of Budgets
In the risk management process, allocating the contingency budget is a crucial step. Accurately estimating this budget can help your organisation in more ways than one. With the ISO standards guiding you, guesswork can be eliminated from the process. When you have a more reliable and accurate risk management procedure to plan schedules and costs, you can stay better informed about which area needs more budget, time, or attention. This information can lead to fewer costs, a better quality of work, and timely execution of plans.
Summing It Up
Risk is unavoidable in any organisation. The key to managing risks and incidents is predicting them early and assessing how much impact they can have on the business. Once your team catches the risks early, you can use intellectual capital to resolve the issue instead of injecting funds into risk management.
Under ISO 20000, continual growth and improvement of service-based IT organisations are necessary. Thus, the Risk and Opportunities Register (Risk Management) - ISO 20000 is another way to keep an organisation in its best shape.