Risk management standards

Posted by Andrew M Cowan in Dec, 2013

What are Risk management standards?

Risk Management Standards set out a specific set of strategic processes which start with the overall aspirations and objectives of an organisation, and intend to help to identify risks and promote the mitigation of risks through best practice.  Standards are often designed and created by a number of agencies who are working together to promote common goals, to help to ensure that organisations carry out high-quality risk management processes.

What are Risk management standards like?

Risk management standards are like a guide to help ensure that risk management is carried out in a proper way. Standards usually include checkpoints and examples, to make it really easy for organisations to comply.

What is the purpose of Risk management standards?

Risk management standards have been designed so that those who must carry out risk management processes have a guide to help them to work. These standards help to provide an international consensus on how to deal with certain risks, and they offer best practice advice on how to deal with others. Risk management standards help organisations to implement strategies which are tried and tested, and proven to work.

What are the different types of Risk management standards?

The ISO 31000 risk management standards framework includes:

  • ISO 31000:2009 – Principles and Guidelines on Implementation
  • ISO/IEC 31010:2009 – Risk Management – Risk Assessment Techniques
  • ISO Guide 73:2009 – Risk Management – Vocabulary

These ISO standards are designed to help guide organisations with a number of different strands of risk management.

As well as the popular ISO standards, FERMA has also produced its own risk management standard, which offers guidance for the whole processes, from identifying risks, right through to transferring some of that risk to another party.

What’s involved with accessing Risk management standards?

Risk management standards are produced by a number of different organisations worldwide. In order to access their risk management standards, you will have to visit the websites of these associations, or get in contact with them some other way. For example, the FERMA risk management standards are available on the FERMA website, and have been translated into a number of different languages, for ease of access.
Complying with some standards can earn an organisation an accreditation.

Where do Risk management standards fit into the risk management process?

Risk management standards are usually introduced at the beginning of the risk management process, as they offer guidance on how to best complete the process.  They may also be considered when looking at existing risk management processes, as they can be used to assess whether the strategies are sufficient.

 

How do Risk management standards impact on managing organisational risk?

Risk Management standards impact on the ways which risk management processes are created and implemented. They offer guidance on setting the context of the strategies, as well as providing ideas about what should and should not be implemented as part of the risk management strategy. Many standards provide advice on how to best to quantify and classify risk.

What terms are used in Risk management standards?

Standard – a rule or principle which is used as the basis for judgment of the risk management process, a series of checkpoints which an organisation should strive to achieve.

Risk – a potential consequence of an action. In recent developments in risk management, a risk can now be considered to be a negative or a positive consequence. A risk may or may not occur.

Management – the strategies which are implemented in an attempt to combat potential risk.

Where can I find more information about Risk management standards?

http://www.theirm.org/publications/documents/Risk_Management_Standard_030820.pdf

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