ISO 31 000
Published 2009. International RM standard for all types of organisations.
Definition of risk - Risk is the effect of uncertainty on objectives. : :
Effect - Positive, negative or derivative.
Risk often described by event, change in circumstances, consequences
Objectives must be clearly stated.
Risk Assessment - Identification of risks followed by their evaluation & ranking.
Use table
Consequences can be harardous, risk, oppertunity risks of very uncertain.
Ranking - quantitative, semi-quantitative or qualitative ito likelyhood and impact
Risk treatmenet
Risk classification system
Determine nature, source and impact
Identify accumulation of similar risks
Identify which strategies are most vulnerable
Usually: Financial control, operational efficiency, reputational exposure, commercial activities. No universal system.
Depends on nature, size and complexity of organistion.
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Risk Management
Continuous process that supports developement & implimentation of organisational strategy,
Risk aware culture - Leadership & commitment from board.
Selecting and implementing appropriate control measures to modify the risk.
Risk control, risk avoidance, risk transfer, risk financing.
Compliance with laws and regulations not negotiable.
Feedback Mechanisms
Monitoring and review of performance
Communication & consultation
Reporting & disclosing