AS/NZS 4360 was joint risk management standard of Australia
and New Zealand and it has been replaced by the new international standard ISO
31000:2009.
Previously steps involved in the management of risk under AS/NZS
4360 risk management standard were as below:
1-
Establish the context: means understanding the context within which
your organization runs. This will give scope for risk management. The context
includes the organizational and strategic considerations. Strategic context
indicates relation between organisation and environment. Influential factors
are process, threats from competitors, politics, legal environment, social etc.
Hence it is SWOT (Strength, weakness, opportunity and threat) and PEST
(Political, Economic, Societal and Technological).
Organisational context means boundaries or
capabilities of the organisation. i.e. Failure to manage the risks.
2-
Identify the risks on the business and their
origin.
3-
Analyse the risk on the basis of likelihood and
consequence. Apply controls (Elimination, substitution, Engineering, Administrative
and PPE)
4-
Evaluate the risk for acceptability or unacceptability.
5-
Treatment of risk by avoiding the risky activity,
reducing the likelihood, reducing the consequence, transferring the risk or
retaining the risk.
6-
Monitor
and review effectiveness by individual responsible line manager. Monitoring will include Active monitoring by
individual managers and by independent audit team.
7-
Communicate the risks and their management
process to all concerned.
Relation between ISO31000:2009 and AS/NZS 4360 Risk
management Standard.
ISO 31000:2009 has been developed on the basis of an
existing standard on risk management, AS/NZS 4360:2004 (In the form of AS/NZS
ISO 31000:2009). Whereas the initial Standards Australia approach provided a
process by which risk management could be undertaken, ISO 31000:2009 addresses
the entire management system that supports the design, implementation,
maintenance and improvement of risk management processes.
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