On the Concept of RISK, UNCERTAINTY & BLACK SWANS

ABSTRACT

[...]within financial risk, there are many forms such as investment risk, market risk, inflation risk, credit risk, business risk, liquidity risk and others (Sraders, 2019). In occupational safety, health and environmental standards, risk has generally been defined as the probability or likelihood of an occurrence, and its resulting severity of consequences. A third variation on the definition of risk is found among management systems standards including ISO 45001, Occupational Health and Safety Management Systems (OHSMS);ISO 14001, Environmental Management Systems;and ISO 9000, Quality Management Systems. An organization considering locating a new facility in such areas would likely assess the degree of risk for wind and flood damage based on a location's weather patterns, flooding and wind damage history, elevation, proximity to coastal waters, and other risk factors. The accepted proposal will involve a high-level committee of global experts with the goal of developing a consensus on meta-definitions (universal or base definitions) for risk and associated terms that would standardize their use in standards and reduce confusion to end users.