New Risk Management Standard
The risk management principles and leadership role of top management have been updated in the recently released international standard ISO 31,000: 2018 entitled Risk Management -Guidelines.
Management of risk is an integral part of good governance and as the standard explains is an iterative process, which is continually refined.
Interestingly, the Guidelines explain the purpose of risk management is the creation and protection of value, and if done correctly will improve performance and encourage innovation.
Model considering opportunities (not from ISO 31,000
Many fanatics think risk management is about being conservative and safe at all costs. This new standard recognises the opportunities as well as negative consequences posed by risk.
Refer to the SIA Global website for copies of ISO 31,000.