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International Risk Management Standard AS/NZS ISO 31000 Peter Brass General Manager Risk Management & Audit PIRSA.

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Presentation on theme: "International Risk Management Standard AS/NZS ISO 31000 Peter Brass General Manager Risk Management & Audit PIRSA."— Presentation transcript:

1 International Risk Management Standard AS/NZS ISO Peter Brass General Manager Risk Management & Audit PIRSA

2 Provides principles and guidelines on risk management. It is generic and not developed for any specific industry or sector but risk “per se”. Can be applied throughout the life of an organisation, and to a wide range of activities, including strategies and decisions, operations, processes, functions, projects, products, services and assets. Can be applied to any type of risk, whatever its nature, whether having positive or negative consequences. Although ISO 31000:2009 provides generic guidelines, it is not intended to promote uniformity of risk management across organisations. The design and implementation of risk management plans and frameworks will need to take into account an organisation’s particular objectives, context, structure and operations. Risk management should continue to develop organically. ISO 31000:2009 is not intended for the purpose of certification. Abstract of ISO 31000:2009 Abstract of ISO 31000:2009 (Source: ISO Website on ISO – 16 June 2009)

3 RISK = effect of uncertainty on objectives NOTE 1 An effect may be positive, negative, or a deviation from the expected. NOTE 2 An objective may be financial, related to health and safety, or defined in other terms. NOTE 3 Risk is often described by an event, a change in circumstances, a consequence, or a combination of these and how they may affect the achievement of objectives. NOTE 4 Risk can be expressed in terms of a combination of the consequences of an event or a change in circumstances, and their likelihood. NOTE 5 Uncertainty is the state, even partial, of deficiency of information related to, understanding or knowledge of, an event, its consequence, or likelihood.

4 Risk Management & Managing Risks In the Standard, the expressions “risk management” and “managing risk” are both used. In general terms, “risk management” refers to the architecture (principles, framework and process) for managing risks effectively, and “managing risk” refers to applying that architecture to particular risks.


6 Principles for managing risk (Clause 3) 1.Creates value 2.Integral part of organisational processes 3.Part of decision making 4.Explicitly addresses uncertainty 5.Systematic, structured & timely 6.Based on best available information 7.Tailored 8.Takes human & cultural factors into account 9.Transparent & inclusive 10.Dynamic, iterative & responsive to change 11.Facilitates continual improvement & enhancement of the organisation AS 4360 – Implicit to some extent

7 Framework for managing risk (Clause 4) AS 4360 – Covered partially in Section 4 “Establishing effective risk management” Mandate & commitment Design of framework For managing risk Implementing risk management Continual improvement of the framework Monitoring & review of the framework

8 Process for managing risk (Clause 5) AS 4360 – Fully covered in Section 3 “Risk Management Process” Establishing the Context Communication & Consultation Analysis of Risks Evaluation of Risks Treatment of Risks Identify Risks Monitoring & Review Risk Assessment

9 Comparison AS/NZS 4360 & ISO 31000:2009 ElementsAS/NZS 4360:2004ISO 31000:2009 ApplicationUniversal across all organisations - Australasia but also widely accepted internationally Universal across all organisations - International Context for Risk ManagementAn organisation’s objectives Principles for managing RiskIncluded as part of risk management culture although mainly implicit. Clause 3 and explicit – common business management principles Framework for managing riskCovered in detailClause 4 of standard. Expands on 4360 Risk Management ProcessCore of the standardClause 5 of standard Attributes of enhanced risk management Not coveredAnnex in Informative only. Guide to establishing and implementing effective risk management program and application of risk management process Covered in detail in HB 436:2004Annex in Informative only.

10 AS/NZS 4360:2004 DefinitionsISO Definitions (ISO/IEC Guide 73) RiskChance of something happening that will impact on objectives Effect of uncertainty on objectives Risk Management Culture, processes and structures that are directed towards realizing potential opportunities whilst managing adverse effects Coordinated activities to direct and control an organisation with regard to risk Risk Management Framework Set of elements of an organisation’s management system concerned with managing risk Set of components that provide the foundations and organizational arrangements for designing, implementing, monitoring, reviewing and continually improving risk management throughout the organisation Risk Management Policy Not definedStatement of the overall intentions and direction of an organisation related to risk management Risk Management Plan Not definedScheme within the risk management framework specifying the approach, the management components and resources to be applied to the management of risk Risk Management Process

11 What this means to us.  If you have followed 4360 – impact of is minimal  Increased status of as international paramount standard – referred explicitly in GOSA Risk Management Policy  If no organisational Risk Management Policy, it is now required.  Timeframe – No deadline. However, should update references and other requirements as part of next risk management program review.

12 SAICORP Benchmarking Program  Self-assessment used to participate in this program will help to review existing risk management program  Self-assessment will also helped to identify any amendments required as the tool used has been aligned with and  Clause 3 Principles  Clause 4 Framework &  Clause 5 Process  Documents are available from Treasury website at  Further information from Darryl Bruhn at or 8226

13 Information Sessions  Today’s presentations are available from the Treasury website at  A schedule of information sessions on the new GOSA Risk Management Policy & ISO has been developed.  First session is scheduled for Thursday 11 th March at the Hetzel Lecture Theatre at the State Library of SA. (9.30am to 11.00am)  Also Wednesday 14th April at same time and venue  Registration for these sessions to  Further information Darryl Bruhn at or 8226


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