ISO 31000: Risk Management Standard Published Nov 23 2009

On the 18th of November 2009, the new international standard for risk management, ISO 31000:2009, was released.

The International Organization for Standardization has released ISO 31000, a new standard providing guidelines for the implementation of effective risk management. Largely based upon the widely used AS/NZS 4360 risk management standard, it provides 11 principles for risk management and guidance on developing a risk management framework. An important advantage of ISO 31000 is that it is a universal standard, applicable to all types of organisation - the first true international guidelines for risk management.

The standard defines risk as "the effect of uncertainty on objectives" and makes clear that risk has positive or negative impacts. Management of risk is therefore directly related to an organisation's ability to achieve its ultimate objectives.

Jon Piercey of Methodware Australia says, "From an Australian and New Zealand perspective it is exciting to see that the new international standard was initially based on our own AS/NZS 4360 risk management standard. Australian and New Zealand organisations are mature in their approach to risk and much of this is due to the significant acceptance of AS/NZS 4360."

ISO 31000 presents an opportunity for organisational improvements. "If you successfully implement all 11 principles contained in ISO 31000 you will achieve effective risk management," adds Chris Peace, principal consultant of Risk Management Limited and former deputy chair of the New Zealand Society for Risk Management. "Principle 11 is particularly important as it relates to continual improvement in quality of the organisation."

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Click here to download Impact of ISO 31000 on Existing ERM Programs, the latest white paper from Jon Piercey. Based in Sydney, Australia, Jon is a senior risk executive responsible for Methodware's operations throughout Asia and the Pacific Rim.