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Module 3

The document outlines the importance of risk management standards, particularly ISO 31000, which provides a structured foundation for discussing and implementing risk management processes. It emphasizes the benefits of using established standards to improve stakeholder confidence, decision-making, and operational effectiveness while avoiding misunderstandings. Additionally, it details the history of risk management standards and the components of a risk management framework that organizations should adopt.

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MouStafa Mahmoud
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14 views19 pages

Module 3

The document outlines the importance of risk management standards, particularly ISO 31000, which provides a structured foundation for discussing and implementing risk management processes. It emphasizes the benefits of using established standards to improve stakeholder confidence, decision-making, and operational effectiveness while avoiding misunderstandings. Additionally, it details the history of risk management standards and the components of a risk management framework that organizations should adopt.

Uploaded by

MouStafa Mahmoud
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Module 3

Risk Management Standards , Principles


and Framework
Standard Definition

▪ Something set up or established by an authority as a


rule for the measure of quantity, weight, value, or
quality

▪ Something used as a measure, norm, or model in


comparative evaluations.

2
Risk Standard in Short
▪ It gives you a structured, credible foundation for
discussions with about risk and risk management

▪ It gives you a starting point for a risk management


process if you don’t have one

▪ It gives you a standard vocabulary for talking about risks


and risk management

3
Why Use Standards?
▪ Saves time and effort:
▪ Using the terms, principles and guidelines in standard
means you don’t have to spend time and effort creating
your own.

▪ Avoid misunderstandings by using concepts and terms


that are well know in the risk management community

▪ Ensure you don’t miss out any aspects of risk


management by using the standard as a checklist

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Standard will help us To….

▪ Improve stakeholder confidence and trust.


▪ Establish a reliable basis for decision making and planning.
▪ Improve controls.
▪ Effectively allocate and use resources for risk treatment.
▪ Improve operational effectiveness and efficiency.
▪ Enhance health and safety performance, as well as environmental
protection.
▪ Minimize losses.
▪ Improve organizational learning and flexibility.

5
History of Standards

▪ AS/NZS 4360:1999 was developed by Australia and NZ in 1999.

▪ Revised and reissued as AS/NZS 4360:2004.

▪ A small number of competing frameworks were present which were


regarded as unsatisfactory.

▪ International Standards Organization started work on ISO 31000 using


AS/NZS 4360:2004 in 2005 as its first draft.

▪ ISO 31000 was issued worldwide in 2009.

▪ ISO 31000 was updated in 2018.

6
What does Standard cover?

ISO 31000:2018 contains:

▪ A set of risk management terms and their definitions.

▪ A set of principles for guiding and informing effective risk


management for an enterprise.

▪ An outline and process for creating management framework and a


risk management process

ISO 31000 is:

▪ Clear

▪ Rational

7
What Standard doesn’t cover?

▪ Detailed instructions on how to manage risk


▪ Templates
▪ Guidance on how to identify risks
▪ Advice on how to manage risks for a specific domain

8
How Do I Apply?
When should I use ISO 31000?
▪ When you are asked to identify or assess risks
▪ When you are asked to manage risks
▪ When you are asked to assess a risk management framework or
process
How should I used ISO 31000 ?
▪ Use it to frame the scope of the work
▪ Use it to guide the engagement
▪ Use it to create a risk management process

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Here Is The Scary Part

10
How We Can Engage Employee ?
Desire

Ability

11
Best Practices Learned

12
Principles, Framework and Process

13
Risk Management Principles

14
Organizational Values Vs Culture

15
Risk Management Framework

▪ Set of components that provide the foundations and organizational


arrangements for designing, implementing, monitoring, reviewing
and continually improving risk management throughout the
organization.

▪ the foundations include the policy, objectives, mandate and


commitment to manage risk

▪ The organizational arrangement include plans, relationships,


accountabilities, resources, processes and activities

▪ RMF is embedded within the organization’s overall strategic and


operational policies and practices.

16
Risk Management Framework

17
Example: Policy

▪ CQ University is committed to managing risk in accordance with the


process set out in the Australian/New Zealand Joint Standard on Risk
Management (AS/NZS ISO 31000:2009) in order to benefit the University
and manage the cost of risk. To meet this commitment, risk is to be every
employee’s business. All employees are required to be responsible and
accountable for managing risk in so far as is reasonably practicable within
their area of responsibility.
▪ Sound risk management principles and practices must become part of the
normal management strategy for all business units within CQ University.
▪ The management of risk is to be integrated into CQ University’s existing
planning and operational processes and is to be fully recognised in the
University’s reporting processes.

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WORKSHOP 2

▪ Write your own organization business vision regarding


risk management?

19

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