Risk management Standard
AS/NZS ISO 31000:2009 Risk Management – Principles and guidelines is a joint Australia/New Zealand adoption of ISO 31000:2009, and supersedes AS/NZS 4360:2004.
Its predecessor, AS/NZS 4360 Risk management, was first published in 1995. After AS/NZS 4360 was last revised in 2004, the joint Australia/New Zealand committee OB-007 decided that rather than undertake a similar revision in 2009, it would promote the development of an international Standard on risk management, which could then be adopted locally.
The Standard provides organisations with guiding principles, a generic framework, and a process for managing risk. New to this edition is the inclusion of 11 risk management principles an organisation should comply with, and a management framework for the effective implementation and integration of these principles into an organisation's management system. Unlike previous editions, emphasis is given to considering risk in terms of the effect of uncertainty on objectives, rather than the risk incident.
This edition also includes an informative annex that sets out the attributes of enhanced risk management for those organisations that have already been working on managing their risks and may wish to strive for a higher level of achievement.
Enabling effective risk management as outlined in AS/NZS ISO 31000 will assist organisations to:
- increase the likelihood of achieving objectives
- be aware of the need to identify and treat risk throughout the organisation
- improve the identification of opportunities and threats
- comply with relevant legal and regulatory requirements and international norms
- improve financial reporting
- improve governance
- 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
- improve loss prevention and incident management
- minimise losses
- improve organisational learning
- improve organisational resilience.
HB 4360:2004 Risk management guidelines – Companion to AS/NZS 4360:2004 can be used as a supplementary handbook to AS/NZS ISO 31000:2009 and provides practical advice to help organisations to apply AS/NZS ISO 31000:2009. This handbook is currently being revised.