Board of Certified Safety Professionals (BCSP) Practice Exam

How does ISO 3100 Risk Management describe the concept of protecting value?

1. The value created must exceed the costs of implementing risk.

2. Risk management is solely about minimizing losses.

3. The focus is only on managing potential threats.

4. Protecting value is irrelevant to achieving objectives.

The correct answer is: The value created must exceed the costs of implementing risk.

ISO 31000 Risk Management emphasizes the importance of protecting and creating value as a core aspect of effective risk management. The correct choice highlights that the value generated through an organization’s activities must surpass the costs associated with implementing risk management strategies. This approach ensures that risk management is not just about avoiding negative outcomes but also about enabling the organization to achieve its objectives and enhance its overall performance. In practice, this means that organizations should assess and prioritize risks in a way that recognizes opportunities for value creation while also managing potential downsides. By balancing these factors, organizations can make informed decisions that contribute positively to their strategic goals, rather than simply reacting to risks in a way that might stifle growth or innovation. The other responses do not align with the principles of ISO 31000; the second suggests a narrow view that limits risk management to loss minimization, which overlooks the positive aspects of risk-taking in achieving objectives. The third option implies an exclusive focus on negative impacts, ignoring the proactive nature of risk management. The final statement dismisses the importance of value protection altogether, which contradicts the fundamental goals of risk management as outlined by ISO 31000.