Purpose of Risk Management Standards and AS/NZS ISO 31000: 2009

Assessment Task 1: Written
Questions

Table of Contents
Assessment Task 1 ..........................................................................................................................3
REFERENCES................................................................................................................................8

Assessment Task 1
1. Discuss the purpose of risk management standards. Include an example of a risk
management standard in your answer.
The main purpose of risk management standards are mainly developed with the motive of
identifying and mitigating risks effectively within the firm so that all activities of company can
be performed in best possible manner. It also supports company in implementing their strategies
in tested and proven form. For instance: Businesses can effectively incorporates ISO 31000 risk
management standards within the firm by making use of checkpoints. By making use of this
standard, risk management team can easily attain objectives of the company through
minimisation of risks related to finance, security and project. This is so because, it makes it
allows business manager in determining business opportunities as well as threats. Based on this
knowledge, they simply makes use of available resources for treating identified risks.
2. Outline the AS/NZS ISO 31000: 2009 Risk Management Principles and Guidelines and
each of the 11 principles.
AS/NZS ISO 31000: 2009
It is the Joint Australia/ New Zealand standard which was developed by respective Joint
Technical Committee OB-007, Risk management. It is highly useful to manage risk management
processes in appropriate manner and also supports in handling specific type of risks in
appropriate manner.
There are total 11 principles of risk management which have been stated as below:
Create value: This is generally done by taking review at continuous basis.
Integral part of organisational processes: It is determined as the integral part of firm's
governance and planning process.
Be part of decision making: Supports in making effective decision and determining their
ow priorities.
Explicitly address uncertainty: It provides chance to company in finding out risk so that
they can execute its associated solution for reduces loss.
Systematic, structured and timely: This is mainly done with the motive of attaining
higher quality of results within timely manner.
Based on the best available information: It is highly important to find out all the
available information with the motive of managing risk in bes possible manner.