AS/NZS 5050 (Int):2020 pdf free.Managing disruption-related risk.
2.1 The nature of uncertainty
To effectively manage disruption-related risk, it is important to reflect on the nature of uncertainty.
Uncertainty is experienced in the internal and external environment in which the organization operates
(or will be operating) and affects decisions that are made in pursuit of its purpose and objectives.
Uncertainty may be present or arise over time, because of the following:
(a) Variability, both natural and intrinsic variability of the system and its environment, particularly where there are unknown relationships or interactions.
(b) Volatility which increases the speed and unpredictability with which change occurs and the onset of its effects.
(c) Complexity which makes it difficult to understand interactions within and amongst systems. and what outcomes will arise from these interactions.
(d) Ambiguity which relates to the lack of clarity regarding a situation, where multiple valid interpretations of information or indicators are possible.
(e) Novelty where there is a lack of prior experience and familiarity within which to build a framework for understanding.
(f) Information limitations as follows:
(i) A lack of available or accessible information.
(ii) The individual’s or organization’s ability and capacity to process, analyse and understand the information (i.e. to make sense of it), including information overload, and information that is beyond their common experience.
(iii) A deliberate decision to ignore or dismiss available information.
(iv) Information that is invalid, inaccurate, inconsistent, unreliable, conflicting, or untrustworthy.
(v) Inappropriate acceptance or rejection of information.
Uncertainty is present in routine environments, although high levels of uncertainty are more common in non-routine environments. As uncertainty changes over time, the nature of risk will change, particularly in very volatile, complex and dynamic operating environments. The timely detection of change and the exploration of uncertainty are of even more importance in these non-routine conditions for dealing with disruption-related risk.
2.2 Relationships with resilience
A detailed examination of resilience is outside the scope of this Standard. This Standard takes the view that the management of disruption-related risk is a vital activity, that along with other important activities, contributes to an overall organizational ability to deal with potential and actual disruption. This provides a potent contribution to an organization’s resilience to a wide range of external and internal challenges.
The management of disruption-related risk assists in (Figure 1)—
(a) understanding the object of resilience (from where challenges emerge);
(I,) the subject of resilience (organization functionality that can be impaired by interaction with those challenges).AS/NZS 5050 pdf download.