What is Risk Management?
Risk management (Risicomanagement) is the systematic process of identifying, analysing, evaluating and controlling risks that could threaten an organisation’s objectives.
The aim is not to avoid every risk, but to make informed decisions about what is acceptable — and what must be controlled.
Risk management is required by, among others, ISO 27001, NIS2, GMP, GxP, IEC 62443 and ISO 9001.
🎯 The aim of Risk Management
- Preventing incidents, damage or disruption
- Protecting people, the environment, information and systems
- Creating awareness of vulnerabilities and consequences
- Supporting compliance and certification
- Enabling informed action when things change
🔁 Steps in risk management
- Risk identification – What can go wrong?
- Risk analysis – What is the likelihood and impact?
- Risk evaluation – Is this acceptable or not?
- Controls – What are we going to do about it?
- Monitoring & review – Evaluation and continuous improvement
This cycle is often supported by a risk register.
📊 Example of a risk assessment
| Risk | Likelihood | Impact | Score | Control |
|---|---|---|---|---|
| Ransomware via email | 3 | 4 | 12 | EDR, awareness, Backup |
| Unsecured remote access | 4 | 4 | 16 | VPN, MFA, jump server |
| Recipe error from incorrect batch data | 2 | 3 | 6 | MES, traceability, MOC |
🛠 Methods and standards
| Method | Description |
|---|---|
| FMEA | Failure Modes and Effects Analysis – risks of components/processes |
| HAZOP | Hazard and Operability Study – for process safety |
| LOPA | Layer of Protection Analysis – assesses layers of protection |
| BOW-TIE | Visual analysis of causes, consequences and barriers |
| Risk matrix | Likelihood × Impact classification (e.g. 1–16 score) |
🔐 Risk management in OT
- Risks are not only about data, but also about process safety, personal safety and downtime
- IEC 62443 and SIL formally require risk management
- Cooperation is needed between IT, OT, production, maintenance and security
- The CMDB and Incident Management can provide risk input
✅ Benefits of Risk Management
- Better decision-making thanks to insight into risks
- Reduced likelihood of incidents or damage
- Improved compliance with laws and regulations
- Higher levels of safety and quality
- A foundation for insurance, business continuity and investment
📌 In summary
Risk Management is the foundation of safe, reliable and responsible operations — whether you are a factory, hospital, government body or IT services provider.