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articles:a_matter_of_risk [2020/05/22 09:47] – [SAE AS9100:2009 (Rev. C)] rrandallarticles:a_matter_of_risk [2020/06/07 11:35] – [ISO 31000:2018] rrandall
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 At this point, "Note 1" becomes nonsensical because there is no definition or use of the word "address" relating to a consequence, outcome, or result. So for the moment, let's ignore the use of that word and focus on how ISO 31000:2018, "Note 1" states that a "risk" can "//create or result in opportunities __and__ threats//".  At this point, "Note 1" becomes nonsensical because there is no definition or use of the word "address" relating to a consequence, outcome, or result. So for the moment, let's ignore the use of that word and focus on how ISO 31000:2018, "Note 1" states that a "risk" can "//create or result in opportunities __and__ threats//". 
  
-In effect, ISO 31000:2018 is stating that “opportunities __and__ threats” are two sides of the same “risk” coin; because the word "and" means that the two exist simultaniously!+In effect, ISO 31000:2018 is stating that “opportunities __and__ threats” are two sides of the same “risk” coin; because the word "and" means that the two exist simultaneously!
  
 It's important to note that risks typically result from an "opportunity". For example, when presented with an investment "opportunity", taking action could result in either a profit, a loss, or no change in value. While taking no action would preserve the current assets (no change), avoid loss, and forgo any profits that the investment would have yielded. It's important to note that risks typically result from an "opportunity". For example, when presented with an investment "opportunity", taking action could result in either a profit, a loss, or no change in value. While taking no action would preserve the current assets (no change), avoid loss, and forgo any profits that the investment would have yielded.
 +
 +The "Standards Related Document SRD-4739, Training Package on NATO Risk Management Guide for Acquisition Programmes" (Edition A Version 1 JULY 2015) supports and promotes this concept:
 +
 +<blockquote>
 +Conceptual – Risk can be seen as a source of variability which is a two-sided construct. The double side nature of variability is captured in the definition of risk that includes both positive and negative consequences. An opportunity is also an uncertain event since it is a possible future event. So both threats and opportunities are covered by this same description of risk as “uncertainty that matters”.</blockquote>
  
 While none of the above ISO documents define "opportunity", [[https://www.dictionary.com/browse/opportunity|Dictionary.com]] does: While none of the above ISO documents define "opportunity", [[https://www.dictionary.com/browse/opportunity|Dictionary.com]] does:
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 An undesirable situation or circumstance that has both a likelihood of occurring and a potentially negative consequence.</blockquote> An undesirable situation or circumstance that has both a likelihood of occurring and a potentially negative consequence.</blockquote>
  
-However, the above definition was deleted from SAE AS9100D in 2016 in order to accommodate the definition provided in ISO 9000:2015. BUT, the "Scope" of AS9100 states: "//It is emphasized that the requirements specified in this standard are complementary (not alternative) to customer and applicable statutory and regulatory requirements.//" +However, the above definition was deleted from SAE AS9100:2016 (Rev. D) in order to accommodate the definition provided in ISO 9000:2015. BUT, the "Scope" of AS9100:2016 states: "//It is emphasized that the requirements specified in this standard are complementary (not alternative) to customer and __applicable__ statutory and __regulatory requirements__.//"  
 + 
 +Therefore, where U.S. Federal Aviation Administration (FAA) regulations apply, the word "risk" is defined in "[[https://www.law.cornell.edu/cfr/text/14/5.5|14 CFR § 5.5 - Definitions]]" (for general aviation safety) as: 
 + 
 +<blockquote>**U.S. 14 CFR § 5.5 - Definitions** \\ 
 +//Risk// \\ 
 +Risk means the composite of predicted severity and likelihood of the potential effect of a hazard.\\ 
 + 
 +and 
 + 
 +//Hazard// \\ 
 +Hazard means a condition that could foreseeably cause or contribute to an aircraft accident as defined in [[https://www.law.cornell.edu/cfr/text/49/830.2|49 CFR 830.2]]. 
 +</blockquote>
  
-And through an interesting turn of fortunate events, [[https://www.law.cornell.edu/cfr/text/14/401.5|U.S. 14 CFR § 401.5 - Definitions]] (for the U.S. commercial space industry) has a definition that supersedes the ISO definition for "risk".+And in "[[https://www.law.cornell.edu/cfr/text/14/401.5|U.S. 14 CFR § 401.5 - Definitions]]" (for the U.S. commercial space industry) as:
  
 <blockquote>**U.S. 14 CFR § 401.5 - Definitions** \\ <blockquote>**U.S. 14 CFR § 401.5 - Definitions** \\
-Risk \\+//Risk// \\
 Risk means a measure that accounts for both the probability of occurrence of a hazardous event and the consequence of that event to persons or property.</blockquote> Risk means a measure that accounts for both the probability of occurrence of a hazardous event and the consequence of that event to persons or property.</blockquote>
 ==== API Spec Q1 ==== ==== API Spec Q1 ====