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| It wasn't an iceberg but the pursuit of opportunities that sank the Titanic. |
President, E3
ISO 31000 (Risk Management) and its supporting publications encompass an impressive and useful "to-do" list of risk management guidelines to create and protect the value of an organization. However, if an organization selectively pursues some of the ISO guidelines and ignore others, highly undesirable events and tragedies can occur. This is what happened with the Titanic.
ISO 31000, section 4.2, suggests we align risk management efforts to our objectives. White Star Lines, the Titanic builders, fulfilled this requirement. Their objectives were to create a luxury liner at the lowest costs, in the least amount of time, and maybe even break the speed record for an Atlantic crossing. These were admirable goals but they ultimately led to tragedy. The Titanic also followed ISO 31000, Section 5.5.1.b., by "taking or increasing the risk in order to pursue an opportunity." They did so because they believed their risks were not extraordinary and could be controlled. This is a common judgment error.
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