Updated Standard Assists Business Leaders Effectively Manage Risk

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20th November 2009, 03:31pm - Views: 784

M E D I A R E L E A S E

For immediate release: Friday 20 November 2009








UPDATED STANDARD ASSISTS BUSINESS LEADERS
EFFECTIVELY MANAGE RISK

Australia adopts new International Standard for risk management

Standards Australia has today released a new edition of the Risk Management Standard, following
the release earlier this week of the first International Standard to assist executives in managing risk
effectively.

AS/NZS ISO 31000-2009 Risk Management Principles and Guidelines replaces AS/NZS 4360-
2004 Risk Management as the leading resource available to Australian directors, top level
executives and others responsible for managing an organisation's risks and achieving objectives.

AS/NZS ISO 31000 is a direct adoption of the new International Standard, which is based
significantly on the 2004 edition of the Australian/New Zealand Risk Management Standard.

Mr Colin Blair, Deputy CEO of Standards Australia said when it was first published in 1995, the
Australian New Zealand Standard for Risk Management, AS/NZS 4360, was a world-first.

"Organisations from around the globe looked to the Standard for guidance on managing their risks,"
Mr Blair said.

"The new International Standard is based on AS/NZS 4360-2004 and was shaped with input from
experienced members of Standards Australia and Standards New Zealand's committee for Risk
Management, OB-007, and experts from some 28 countries representing all continents. Australia
has a lot to be proud of," said Mr Blair.

The new International 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. The new edition emphasises that risk is the effect of uncertainty on objectives, not just an
event.

This new 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:

Increase the likelihood of achieving objectives
Encourage proactive management
Be aware of the need to identify and treat risk throughout the organisation
Improve the identification of opportunities and threats


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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.


AS/NZS ISO 31000-2009 supersedes AS/NZS 4360-2004 Risk Management and is now available
from Standards Australia's distributor, SAI Global.


Background

AS/NZS 4360 Risk Management was first published by Standards Australia in 1995. At that time it was the
world's first Standard for risk management. When AS/NZS 4360-1999 was revised in 2004 (as part of the
routine five yearly revision), the Joint Australia/New Zealand Committee OB-007 decided that rather than
undertake a similar revision in 2009, Standards Australia and Standards New Zealand would promote the
development of an International Standard on risk management which would then be adopted locally.

In 2005, the International Organization for Standardization (ISO) established a working group to develop the
first International risk management Standard using AS/NZS 4360-2004 as the basis of the first draft. The
Standards development process included extensive public consultation in Australia and New Zealand,
resulting in the publication in mid-November of ISO 31000-2009.




Media enquiries: Luisa Bustos, Writer and Public Affairs Officer, Standards Australia
(02) 9237 6184 | 0405 506 457 | [email protected]

General enquiries: Standards Australia Customer Information Service
1800 035 822 | [email protected]


Standards Australia is a not-for-profit organisation, recognised by the Government as Australia's peak Standards body. It coordinates
standardisation activities, develops internationally aligned Australian Standards that deliver Net Benefit to Australia, and facilitates the
accreditation of other Standards Development Organisations. Through the Australian International Design Awards it promotes excellence in
design and innovation. www.standards.org.au www.designawards.com.au www.australiandesign.org





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