Risk Management Ltd

 
A new exotic disease is identified each year
A new exotic disease is identified each year
Major disasters can prevent access to otherwise undamaged workplaces
Major disasters can prevent access to otherwise undamaged workplaces
Counterfeiting is a major source of risk
Counterfeiting is a major source of risk
Blue asbestos was used illegally as insulation
Blue asbestos was used illegally as insulation
Oil pollution after a tank was over-filled
Oil pollution after a tank was over-filled
The timber industry, a key New Zealand industry
The timber industry, a key New Zealand industry
The 2007 Ruapehu lahar resulted in closure of roads and the main rail line - supply chains were cut
The 2007 Ruapehu lahar resulted in closure of roads and the main rail line - supply chains were cut
Bridge destroyed and gas pipeline out of action due to flooding
Bridge destroyed and gas pipeline out of action due to flooding
Most organisations are now highly dependent on telecommunications
Most organisations are now highly dependent on telecommunications
Do your communications give the right message?
Do your communications give the right message?
Fire destroyed a distribution centre in two hours resulting in sale of the business
Fire destroyed a distribution centre in two hours resulting in sale of the business
Damage to a water main - a key infrastructure
Damage to a water main - a key infrastructure
Aerosols proved to be a key risk source for a supermarket chain
Aerosols proved to be a key risk source for a supermarket chain
A simple human error
A simple human error
A risk management training workshop in action
A risk management training workshop in action
Risk communications should be plain English and written for the target audience
Risk communications should be plain English and written for the target audience
Unreinforced masonry buildings can collapse in earthquakes, damaging adjacent property
Unreinforced masonry buildings can collapse in earthquakes, damaging adjacent property
Effective corporate governance requires effective risk management
Effective corporate governance requires effective risk management
A risk management training course for 200 people in the Philippines
A risk management training course for 200 people in the Philippines
LPG storage site meeting international best practice
LPG storage site meeting international best practice
Change in iron ore price resulted in thefts
Change in iron ore price resulted in thefts
Transport links and supply chains cut - effective business continuity management needed
Transport links and supply chains cut - effective business continuity management needed
New Zealand wool carpets in store
New Zealand wool carpets in store
Fire-fighting water run off into an ecologically sensitive lagoon
Fire-fighting water run off into an ecologically sensitive lagoon
Terns living (mostly) undisturbed on a marine platform
Terns living (mostly) undisturbed on a marine platform
Critical services require effective risk assessments and business continuity planning
Critical services require effective risk assessments and business continuity planning
Access to good risk management information is critical
Access to good risk management information is critical

About risk management

What is risk management? Everybody has a slightly different answer to the question and the definition of risk also depends on who you are talking to.

Fortunately, there is an international standard ISO 31000 (adopted in Australia and New Zealand as AS/NZS ISO 31000: 2009 Risk management – Principles and guidelines) available from Standards New Zealand.

The standard defines risk as “the effect of uncertainty on objectives”

Some people use terms such as “enterprise risk management”, “strategic risk management” or “integrated risk management”. We believe the plain “risk management” is enough to capture the full meaning of risk management. It is defined in the Standard as “the coordinated activities to direct and control an organisation with regard to risk”. This definition is very similar to other management system definitions published by the International Standards Organisation (eg, quality management and environmental management).

AS/NZS ISO 31000 defines the risk management process as “the systematic application of management policies, procedures and practices to the tasks of communicating, establishing the context, identifying, analysing, evaluating, treating, monitoring and reviewing risk”

An organisation also needs systems in place that facilitate risk management, including communication and consultation, and monitoring and review. These are described in AS/NZS ISO 31000.

Risk management must be part of an open style of corporate governance – it is one of the key links between good governance and other areas of management.

Sometimes, risk management is seen as a subset of other areas of management – we think that all management is (or should be) risk management.  AS/NZS ISO 31000 states 11 principles for risk management, including integration into all organisational processes.

Research and experience show the most effective risk management is integrated into organisational processes and practices. Put another way, there is a single management system directed at achieving the objectives of the organisation.

This approach will result in other technical management systems being aligned into a single corporate programme. This often includes occupational health and safety, quality and environmental management.