The risk management process needs to be flexible. Given that, we operate in the challenging environment, the companies require the meaning for managing risk as well as continuous improvement in identifying new risks that will evolve and make allowances for those risks that are no longer existing.
Ongoing continuous improvement
This is an effective practice to ensure continuous improvement for the companies with mature risk management environment are those who have invested resources over time and are well able to demonstrate.
Question 3 Identify the elements and explain the “Risk Management Framework” in AS/NZ ISO 31000:2009.
Risk management structure/framework is a series of elements and components which provide the platform, organisational arrangement for implementing, developing, monitoring, analysing, reviewing and continouly improving risk management throughout the company. There are four primary components, which are explained as under:
1. Governance and assurance
2. Risk management policy
3. Risk management system
4. Risk management process
This principle of the context with a view to aligns mutually with the organisation’s governance framework, enabling risk thick information to better acknowledge decision-making.
Risk assurance is a having to do with component of the context as it provides reception to authority that action processes and controls are in dwelling and effective. The two shot in the dark assurance mechanisms are:
Risk management monitoring and reporting
Question 4 Identify the elements and explain the “Risk Management Process” in AS/NZ ISO 31000:2009.
Risk management processes
The organisation aims to construct a culture where insight, managing and accepting risks are se...
... middle of paper ...
...iples, frame of reference and processes for managing risks from A to Z.
The addition of this standard will help us in many ways, some of them are mentioned below:
• Increase the probability of achieving desired objectives in a safer manner
• To maintain compatible risk management practices with the law and legal requirements
• Encourage proactive management
• Identify and treat risk throughout the organization
• Improve the identification of better opportunities and threats
• to comply with legal and regulatory requirements
• to improve stakeholders confidence and trust
Establish a reliable basis of for decision making and planning
To improve controls
Effectively allocate and use resources for risk treatment.
Question 6 Outline the organisational policies, procedures and processes that an organisation needs to have in place in order to effectively manage risk.
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