A S / N Z S I S O 3 1 0 0 0 : 2 0 0 9T h i s J o i n t A u s t r a l i a n / N e w Z e a l a n d S t a n d a r d w a s p r e p a r e d b y J o i n t T e c h n i c a l C o m m i t t e e O B - 0 0 7 , R i s k M a n a g e m e n t . I t w a s a p p r o v e d o n b e h a l f o f t h e C o u n c i l o f S t a n d a r d s A u s t r a l i a o n 6 N o v e m b e r 2 0 0 9 a n d o n b e h a l f o f t h e C o u n c i l o f S t a n d a r d s N e w Z e a l a n d o n 1 6 O c t o b e r 2 0 0 9 . T h i s S t a n d a r d w a s p u b l i s h e d o n 2 0 N o v e m b e r 2 0 0 9 . T h e f o l l o w i n g a r e r e p r e s e n t e d o n C o m m i t t e e O B - 0 0 7 : A u s t r a l i a n C o m p u t e r S o c i e t y C o m m e r c e C o m m i s s i o n N e w Z e a l a n d C o m m i t t e e I T - 0 1 2 D e p a r t m e n t o f E d u c a t i o n a n d E a r l y C h i l d h o o d D e v e l o p m e n t V i c t o r i a E m e r g e n c y M a n a g e m e n t A u s t r a l i a E n g i n e e r s A u s t r a l i a E n v i r o n m e n t a l R i s k M a n a g e m e n t A u t h o r i t y N e w Z e a l a n d F i n a n c i a l S e r v i c e s I n s t i t u t e o f A u s t r a l i a T h e I n s t i t u t e o f I n t e r n a l A u d i t o r s – A u s t r a l i a I n s t i t u t i o n o f P r o f e s s i o n a l E n g i n e e r s N e w Z e a l a n d I n t e r n a t i o n a l A s s o c i a t i o n o f E m e r g e n c y M a n a g e r s L a T r o b e U n i v e r s i t y L a w S o c i e t y o f N e w S o u t h W a l e s M a s s e y U n i v e r s i t y M i n e r a l s C o u n c i l o f A u s t r a l i a M i n i s t r y o f E c o n o m i c D e v e l o p m e n t ( N e w Z e a l a n d ) N e w Z e a l a n d S o c i e t y f o r R i s k M a n a g e m e n t R i s k M a n a g e m e n t I n s t i t u t i o n o f A u s t r a l a s i a T h e U n i v e r s i t y o f N e w S o u t h W a l e s U n i v e r s i t y o f C a n t e r b u r y N e w Z e a l a n dK e e p i n g S t a n d a r d s u p - t o - d a t eS t a n d a r d s a r e l i v i n g d o c u m e n t s w h i c h r e f l e c t p r o g r e s s i n s c i e n c e , t e c h n o l o g y a n d s y s t e m s . T o m a i n t a i n t h e i r c u r r e n c y , a l l S t a n d a r d s a r e p e r i o d i c a l l y r e v i e w e d , a n d n e w e d i t i o n s a r e p u b l i s h e d . B e t w e e n e d i t i o n s , a m e n d m e n t s m a y b e i s s u e d . S t a n d a r d s m a y a l s o b e w i t h d r a w n . I t i s i m p o r t a n t t h a t r e a d e r s a s s u r e t h e m s e l v e s t h e y a r e u s i n g a c u r r e n t S t a n d a r d , w h i c h s h o u l d i n c l u d e a n y a m e n d m e n t s w h i c h m a y h a v e b e e n p u b l i s h e d s i n c e t h e S t a n d a r d w a s p u r c h a s e d . D e t a i l e d i n f o r m a t i o n a b o u t j o i n t A u s t r a l i a n / N e w Z e a l a n d S t a n d a r d s c a n b e f o u n d b y v i s i t i n g t h e S t a n d a r d s W e b S h o p a t w w w . s a i g l o b a l . c o m . a u o r S t a n d a r d s N e w Z e a l a n d w e b s i t e a t w w w . s t a n d a r d s . c o . n z a n d l o o k i n g u p t h e r e l e v a n t S t a n d a r d i n t h e o n - l i n e c a t a l o g u e . F o r m o r e f r e q u e n t l i s t i n g s o r n o t i f i c a t i o n o f r e v i s i o n s , a m e n d m e n t s a n d w i t h d r a w a l s , S t a n d a r d s A u s t r a l i a a n d S t a n d a r d s N e w Z e a l a n d o f f e r a n u m b e r o f u p d a t e o p t i o n s . F o r i n f o r m a t i o n a b o u t t h e s e s e r v i c e s , u s e r s s h o u l d c o n t a c t t h e i r r e s p e c t i v e n a t i o n a l S t a n d a r d s o r g a n i z a t i o n . W e a l s o w e l c o m e s u g g e s t i o n s f o r i m p r o v e m e n t i n o u r S t a n d a r d s , a n d e s p e c i a l l y e n c o u r a g e r e a d e r s t o n o t i f y u s i m m e d i a t e l y o f a n y a p p a r e n t i n a c c u r a c i e s o r a m b i g u i t i e s . P l e a s e a d d r e s s y o u r c o m m e n t s t o t h e C h i e f E x e c u t i v e o f e i t h e r S t a n d a r d s A u s t r a l i a o r S t a n d a r d s N e w Z e a l a n d a t t h e a d d r e s s s h o w n o n t h e b a c k c o v e r .

T h i s S t a n d a r d w a s i s s u e d i n d r a f t f o r m f o r c o m m e n t a s D R 0 9 0 6 3 .AS/NZS ISO 31000:2009

Risk management—Principles and guidelinesCOPYRIGHT© S t a n d a r d s A u s t r a l i a / S t a n d a r d s N e w Z e a l a n d A l l r i g h t s a r e r e s e r v e d . N o p a r t o f t h i s w o r k m a y b e r e p r o d u c e d o r c o p i e d i n a n y f o r m o r b y a n y m e a n s , e l e c t r o n i c o r m e c h a n i c a l , i n c l u d i n g p h o t o c o p y i n g , w i t h o u t t h e w r i t t e n p e r m i s s i o n o f t h e p u b l i s h e r . J o i n t l y p u b l i s h e d b y S t a n d a r d s A u s t r a l i a , G P O B o x 4 7 6 , S y d n e y , N S W 2 0 0 1 a n d S t a n d a r d s N e w Z e a l a n d , P r i v a t e B a g 2 4 3 9 , W e l l i n g t o n 6 1 4 0 I S B N 0 7 3 3 7 9 2 8 9 8 Originated as AS/NZS 4360:1995.Third edition 2004.Revised and redesignated as AS/NZS ISO 31000:2009.

P R E F A C ET h i s S t a n d a r d w a s p r e p a r e d b y J o i n t S t a n d a r d s A u s t r a l i a / S t a n d a r d s N e w Z e a l a n d C o m m i t t e e O B - 0 0 7 , R i s k M a n a g e m e n t t o s u p e r s e d e A S / N Z S 4 3 6 0 : 2 0 0 4 ,R i s k m a n a g e m e n t .W h e n A S / N Z S 4 3 6 0 : 1 9 9 9 w a s r e v i s e d i n 2 0 0 4 ( a s p a r t o f a r o u t i n e f i v e y e a r l y r e v i s i o n ) , i t w a s d e c i d e d b y t h e J o i n t A u s t r a l i a n / N e w Z e a l a n d C o m m i t t e e O B - 0 0 7 t h a t r a t h e r t h a n u n d e r t a k e a s i m i l a r r e v i s i o n i n 2 0 0 9 , S t a n d a r d s A u s t r a l i a a n d S t a n d a r d s N e w Z e a l a n d w o u l d p r o m o t e t h e d e v e l o p m e n t o f a n i n t e r n a t i o n a l s t a n d a r d o n r i s k m a n a g e m e n t w h i c h w o u l d t h e n b e a d o p t e d . I n 2 0 0 5 t h e I n t e r n a t i o n a l O r g a n i z a t i o n f o r S t a n d a r d i z a t i o n ( I S O ) e s t a b l i s h e d a w o r k i n g g r o u p t o d e v e l o p t h e f i r s t i n t e r n a t i o n a l r i s k m a n a g e m e n t s t a n d a r d u s i n g A S / N Z S 4 3 6 0 : 2 0 0 4 a s t h e f i r s t d r a f t . T h e s t a n d a r d d e v e l o p m e n t p r o c e s s i n c l u d e d e x t e n s i v e p u b l i c c o n s u l t a t i o n i n A u s t r a l i a a n d N e w Z e a l a n d a n d r e s u l t e d i n t h e p u b l i c a t i o n o f I S O 3 1 0 0 0 : 2 0 0 9 . T h e m a i n v a r i a t i o n s t o A S / N Z S 4 3 6 0 : 2 0 0 4 , a s o u t l i n e d i n t h e I n t r o d u c t i o n , a r e a s f o l l o w s : (a)R i s k i s n o w d e f i n e d i n t e r m s o f t h e e f f e c t o f u n c e r t a i n t y o n o b j e c t i v e s .(b)T h e p r i n c i p l e s t h a t o r g a n i z a t i o n s m u s t f o l l o w t o a c h i e v e e f f e c t i v e r i s k m a n a g e m e n t h a v e n o w b e e n m a d e e x p l i c i t . (c)T h e r e i s m u c h g r e a t e r e m p h a s i s a n d g u i d a n c e o n h o w r i s k m a n a g e m e n t s h o u l d b e i m p l e m e n t e d a n d i n t e g r a t e d i n t o o r g a n i z a t i o n s t h r o u g h t h e c r e a t i o n a n d c o n t i n u o u s i m p r o v e m e n t o f a f r a m e w o r k . (d)A n i n f o r m a t i v e A n n e x d e s c r i b e s t h e a t t r i b u t e s o f e n h a n c e d r i s k m a n a g e m e n t a n d r e c o g n i z e s t h a t w h i l e a l l o r g a n i z a t i o n s m a n a g e r i s k i n s o m e w a y a n d t o s o m e e x t e n t t h i s m a y n o t a l w a y s b e o p t i m a l . T h e p r o c e s s d e s c r i b e d f o r m a n a g i n g r i s k i s i d e n t i c a l t o t h a t i n A S / N Z S 4 3 6 0 : 2 0 0 4 . T h i s S t a n d a r d i s i d e n t i c a l w i t h , a n d h a s b e e n r e p r o d u c e d f r o m I S O 3 1 0 0 0 : 2 0 0 9 ,

Risk m a n a g e m e n t — P r i n c i p l e s a n d g u i d e l i n e s. M i n o r c h a n g e s h a v e b e e n m a d e t o t h e I n t r o d u c t i o n t o a d d r e s s t h e a p p l i c a t i o n o f t h e S t a n d a r d i n A u s t r a l i a a n d N e w Z e a l a n d . A s t h i s S t a n d a r d i s r e p r o d u c e d f r o m a n I n t e r n a t i o n a l S t a n d a r d , t h e f o l l o w i n g a p p l i e s : ( i ) I t s n u m b e r d o e s n o t a p p e a r o n e a c h p a g e o f t e x t a n d i t s i d e n t i t y i s s h o w n o n l y o n t h e c o v e r a n d t i t l e p a g e . ( i i ) I n t h e s o u r c e t e x t ‘ t h i s I n t e r n a t i o n a l S t a n d a r d ’ s h o u l d r e a d ‘ t h i s A u s t r a l i a n / N e w Z e a l a n d S t a n d a r d ’ . T h e t e r m ‘ i n f o r m a t i v e ’ i s u s e d t o d e f i n e t h e a p p l i c a t i o n o f t h e a n n e x t o w h i c h i t a p p l i e s . A n i n f o r m a t i v e a n n e x i s o n l y f o r i n f o r m a t i o n a n d g u i d a n c e .C O N T E N T SP a g e1 Scope....................................................................... 12 Terms and definitions............................................. 13 Principles................................................................ 74 Framework ............................................................. 84.1 General ................................................................. 84.2 Mandate and commitment.................................... 94.3 Design of framework for managing risk................. 104.3.1 Understanding of the organization and its context..... 104.3.2 Establishing risk management policy.................. 104.3.3 Accountability................................................... 114.3.4 Integration into organizational processes........... 114.3.5 Resources ......................................................... 114.3.6 Establishing internal communication and reporting mechanisms.... 124.3.7 Establishing external communication and reporting mechanisms... 124.4 Implementing risk management ...................................................... 124.4.1 Implementing the framework for managing risk............................ 124.4.2 Implementing the risk management process.................................. 134.5 Monitoring and review of the framework......................................... 134.6 Continual improvement of the framework........................................ 135 Process.............................................................................................. 135.1 General........................................................................................... 135.2 Communication and consultation ................................................... 145.3 Establishing the context.................................................................... 155.3.1 General ........................................................................................ 155.3.2 Establishing the external context.................................................. 155.3.3 Establishing the internal context.................................................... 155.3.4 Establishing the context of the risk management process .............. 165.3.5 Defining risk criteria....................................................................... 175.4 Risk assessment ............................................................................... 175.4.1 General ......................................................................................... 175.4.2 Risk identification.......................................................................... 175.4.3 Risk analysis.................................................................................. 18

5.4.4 Risk evaluation.............................................................................. 185.5 Risk treatment................................................................................. 185.5.1 General.......................................................................................... 185.5.2 Selection of risk treatment options................................................ 195.5.3 Preparing and implementing risk treatment plans ........................ 205.6 Monitoring and review ................................................................... 205.7 Recording the risk management process........................................... 21Annex A(informative) Attributes of enhanced risk management......................... 22Bibliography.......................................................................................... 24iiiT h i s i s a f r e e 9 p a g e s a m p l e . A c c e s s t h e f u l l v e r s i o n o n l i n e .I N T R O D U C T I O NO r g a n i z a t i o n s o f a n y k i n d f a c e i n t e r n a l a n d e x t e r n a l f a c t o r s a n d i n f l u e n c e s t h a t m a k e i t u n c e r t a i n w h e t h e r , w h e n a n d t h e e x t e n t t o w h i c h t h e y w i l l a c h i e v e o r e x c e e d t h e i r o b j e c t i v e s . T h e e f f e c t t h i s u n c e r t a i n t y h a s o n t h e o r g a n i z a t i o n ’ s o b j e c t i v e s i s “ r i s k ” . A l l a c t i v i t i e s o f a n o r g a n i z a t i o n i n v o l v e r i s k . O r g a n i z a t i o n s m a n a g e r i s k b y a n t i c i p a t i n g , u n d e r s t a n d i n g a n d d e c i d i n g w h e t h e r t o m o d i f y i t . T h r o u g h o u t t h i s p r o c e s s t h e y c o m m u n i c a t e a n d c o n s u l t w i t h s t a k e h o l d e r s a n d m o n i t o r a n d r e v i e w t h e r i s k a n d t h e c o n t r o l s t h a t a r e m o d i f y i n g t h e r i s k . T h i s S t a n d a r d d e s c r i b e s t h i s s y s t e m a t i c a n d l o g i c a l p r o c e s s i n d e t a i l . T h i s i s a n e w s t a n d a r d f o r m a n a g i n g r i s k t h a t s u p e r s e d e s A S / N Z S 4 3 6 0 : 2 0 0 4 . I t b u i l d s u p o n t h e p r o c e s s e s c o n t a i n e d i n t h e s u p e r s e d e d s t a n d a r d . W h i l e a l l o r g a n i z a t i o n s m a n a g e r i s k t o s o m e d e g r e e , t h i s S t a n d a r d e s t a b l i s h e s a n u m b e r o f p r i n c i p l e s t h a t n e e d t o b e s a t i s f i e d b e f o r e r i s k m a n a g e m e n t w i l l b e e f f e c t i v e . T h i s S t a n d a r d r e c o m m e n d s t h a t o r g a n i z a t i o n s s h o u l d h a v e a f r a m e w o r k t h a t i n t e g r a t e s t h e p r o c e s s f o r m a n a g i n g r i s k i n t o t h e o r g a n i z a t i o n ' s o v e r a l l g o v e r n a n c e , s t r a t e g y a n d p l a n n i n g , m a n a g e m e n t , r e p o r t i n g p r o c e s s e s , p o l i c i e s , v a l u e s a n d c u l t u r e . R i s k m a n a g e m e n t c a n b e a p p l i e d a c r o s s a n e n t i r e o r g a n i z a t i o n , t o i t s m a n y a r e a s a n d l e v e l s , a s w e l l a s t o s p e c i f i c f u n c t i o n s , p r o j e c t s a n d a c t i v i t i e s . A l t h o u g h t h e p r a c t i c e o f r i s k m a n a g e m e n t h a s b e e n d e v e l o p e d o v e r t i m e a n d w i t h i n m a n y s e c t o r s t o m e e t d i v e r s e n e e d s , t h e a d o p t i o n o f c o n s i s t e n t p r o c e s s e s w i t h i n a c o m p r e h e n s i v e f r a m e w o r k h e l p s e n s u r e t h a t r i s k i s m a n a g e d e f f e c t i v e l y , e f f i c i e n t l y a n d c o h e r e n t l y a c r o s s a n o r g a n i z a t i o n . T h e g e n e r i c a p p r o a c h d e s c r i b e d i n t h i s S t a n d a r d p r o v i d e s t h e p r i n c i p l e s a n d g u i d e l i n e s f o r m a n a g i n g a n y f o r m o f r i s k i n a s y s t e m a t i c , t r a n s p a r e n t a n d c r e d i b l e m a n n e r a n d w i t h i n a n y s c o p e a n d c o n t e x t . T h e r e l a t i o n s h i p b e t w e e n t h e p r i n c i p l e s f o r m a n a g i n g r i s k , t h e f r a m e w o r k i n w h i c h i t o c c u r s a n d t h e r i s k m a n a g e m e n t p r o c e s s d e s c r i b e d i n t h i s S t a n d a r d i s s h o w n i n F i g u r e

1 . W h e n i m p l e m e n t e d a n d m a i n t a i n e d i n a c c o r d a n c e w i t h t h i s S t a n d a r d , t h e m a n a g e m e n t o f r i s k e n a b l e s a l l o r g a n i z a t i o n s t o , f o r e x a m p l e —(a) i n c r e a s e t h e l i k e l i h o o d o f a c h i e v i n g o b j e c t i v e s ;(b) e n c o u r a g e p r o a c t i v e m a n a g e m e n t ;(c) b e a w a r e o f t h e n e e d t o i d e n t i f y a n d t r e a t r i s k t h r o u g h o u t t h e o r g a n i z a t i o n ;(d) i m p r o v e t h e i d e n t i f i c a t i o n o f o p p o r t u n i t i e s a n d t h r e a t s ;(e) a c h i e v e c o m p a t i b l e r i s k m a n a g e m e n t p r a c t i c e s b e t w e e n o r g a n i z a t i o n s a n d n a t i o n s ;(f) c o m p l y w i t h r e l e v a n t l e g a l a n d r e g u l a t o r y r e q u i r e m e n t s a n d i n t e r n a t i o n a l n o r m s ;(g) i m p r o v e f i n a n c i a l r e p o r t i n g ;(h) i m p r o v e g o v e r n a n c e ;(i) i m p r o v e s t a k e h o l d e r c o n f i d e n c e a n d t r u s t ;(j) e s t a b l i s h a r e l i a b l e b a s i s f o r d e c i s i o n m a k i n g a n d p l a n n i n g ; (k)i m p r o v e c o n t r o l s ;(l) e f f e c t i v e l y a l l o c a t e a n d u s e r e s o u r c e s f o r r i s k t r e a t m e n t ;(m) i m p r o v e o p e r a t i o n a l e f f e c t i v e n e s s a n d e f f i c i e n c y ;(n) e n h a n c e h e a l t h a n d s a f e t y p e r f o r m a n c e a s w e l l a s e n v i r o n m e n t a l p r o t e c t i o n ;(o) i m p r o v e l o s s p r e v e n t i o n a n d i n c i d e n t m a n a g e m e n t ; m i n i m i z e l o s s e s ;(q) i m p r o v e o r g a n i z a t i o n a l l e a r n i n g ; a n d(r) i m p r o v e o r g a n i z a t i o n a l r e s i l i e n c e .

T h i s S t a n d a r d i s i n t e n d e d t o m e e t t h e n e e d s o f a w i d e r a n g e o f s t a k e h o l d e r s i n c l u d i n g — ( i ) t h o s e a c c o u n t a b l e f o r a c h i e v i n g o b j e c t i v e s a n d t h e r e f o r e e n s u r i n g t h a t r i s k i s e f f e c t i v e l y m a n a g e d w i t h i n t h e o r g a n i z a t i o n a s a w h o l e o r w i t h i n a s p e c i f i c a r e a , p r o j e c t o r a c t i v i t y ;

( i i ) t h o s e r e s p o n s i b l e f o r d e v e l o p i n g r i s k m a n a g e m e n t p o l i c y w i t h i n t h e i r o r g a n i z a t i o n ;

( i i i ) t h o s e w h o n e e d t o e v a l u a t e a n o r g a n i z a t i o n e f f e c t i v e n e s s i n m a n a g i n g r i s k ; a n d

( i v ) d e v e l o p e r s o f s t a n d a r d s , g u i d e s , p r o c e d u r e s , a n d c o d e s o f p r a c t i c e t h a t i n w h o l e o r i n p a r t s e t o u t h o w r i s k i s t o b e m a n a g e d w i t h i n t h e s p e c i f i c c o n t e x t o f t h e s e d o c u m e n t s . O r g a n i z a t i o n s w i t h e x i s t i n g r i s k m a n a g e m e n t p r o c e s s e s c a n u s e t h i s S t a n d a r d t o c r i t i c a l l y r e v i e w , a l i g n a n d i m p r o v e t h e i r e x i s t i n g p r a c t i c e s . T h o s e w h o s e r i s k m a n a g e m e n t f r a m e w o r k h a s b e e n b a s e d o n A S / N Z S 4 3 6 0 : 2 0 0 4 w i l l t h e r e b y b e n e f i t f r o m t h e a d d i t i o n a l c o n c e p t s a n d p r a c t i c e s i n t h i s S t a n d a r d . I n t h i s

S t a n d a r d , t h e e x p r e s s i o n s “ r i s k m a n a g e m e n t ” a n d “ m a n a g i n g r i s k ” a r e b o t h u s e d . I n g e n e r a l t e r m s , “ r i s k m a n a g e m e n t ” r e f e r s t o t h e a r c h i t e c t u r e ( p r i n c i p l e s , f r a m e w o r k a n d p r o c e s s ) f o r m a n a g i n g r i s k s e f f e c t i v e l y , a n d “ m a n a g i n g r i s k ” r e f e r s t o a p p l y i n g t h a t a r c h i t e c t u r e t o p a r t i c u l a r r i s k s .

M a n d a t e a n d c o m m i t m e n t ( 4 . 2 ) I m p l e m e n t i n g r i s k m a n a g e m e n t ( 4 . 4 ) D e s i g n o f f r a m e w o r k f o r managing r i s k ( 4 . 3 ) C o n t i n u a l i m p r o v e m e n t o f t h e f r a m e w o r k ( 4 . 6 ) M o n i t o r i n g a n d r e v i e w o f t h e f r a m e w o r k ( 4 . 5 )

F r a m e w o r k ( C l a u s e 4 ) a ) C r e a t e s v a l u e b ) I n t e g r a l p a r t o f o r g a n i z a t i o n a l p r o c e s s e s c ) P a r t o f d e c i s i o n m a k i n g d ) E x p l i c i t l y a d d r e s s e s u n c e r t a i n t ye ) S y s t e m a t i c , s t r u c t u r e d a n d t i m e l y f ) B a s e d o n t h e b e s t a v a i l a b l e i n f o r m a t i o n g ) T a i l o r e d h ) T a k e s h u m a n a n d c u l t u r a l f a c t o r s i n t o a c c o u n ti ) T r a n s p a r e n t a n d i n c l u s i v e j ) D y n a m i c , i t e r a t i v e a n d r e s p o n s i v e t o c h a n g e k ) F a c i l i t a t e s c o n t i n u a l i m p r o v e m e n t a n d e n h a n c e m e n t o f t h e o r g a n i z a t i o n P r i n c i p l e s ( C l a u s e 3 ) P r o c e s s ( C l a u s e 5 ) E s t a b l i s h i n g t h e c o n t e x t ( 5 . 3 ) R i s k a s s e s s m e n t ( 5 . 4 ) R i s k i d e n t i f i c a t i o n ( 5 . 4 . 2 ) R i s k a n a l y s i s ( 5 . 4 . 3 ) R i s k e v a l u a t i o n ( 5 . 4 . 4 ) R i s k t r e a t m e n t ( 5 . 5 ) C o m m u n i c a t i o n a n d c o n s u l t a t i o n ( 5 . 2 ) M o n i t o r i n g a n d r e v i e w ( 5 . 6 )

Figure 1 — Relationships between the risk management principles, framework and process

R i s k m a n a g e m e n t — P r i n c i p l e s a n d g u i d e l i n e s

1 Scope

This International Standard provides principles and generic guidelines on risk management. This International Standard can be used by any public, private or community enterprise, association, group or individual. Therefore, this International Standard is not specific to any industry or sector.

NOTE For convenience, all the different users of this International Standard are referred to by the general term“ organization”.This International Standard can be applied throughout the life of an organization, and to a wide range of activities, including strategies and decisions, operations, processes, functions, projects, products, services and assets. This International Standard can be applied to any type of risk, whatever its nature, whether having positive or negative consequences. Although this International Standard provides generic guidelines, it is not intended to promote uniformity of risk management across organizations. The design and implementation of risk management plans and frameworks will need to take into account the varying needs of a specific organization, its particular objectives, context, structure, operations, processes, functions, projects, products, services, or assets and specific practices employed. It is intended that this International Standard be utilized to harmonize risk management processes in existing and future standards. It provides a common approach in support of standards dealing with specific risks and/or sectors, and does not replace those standards. This International Standard is not intended for the purpose of certification.

2 Terms and definitionsFor the purposes of this document, the following terms and definitions apply.

2.1 risk effect of uncertainty on objectivesNOTE 1 An effect is a deviation from the expected — positive and/or negative. NOTE 2 Objectives can have different aspects (such as financial, health and safety, and environmental goals) and can apply at different levels (such as strategic, organization-wide, project, product and process).NOTE 3 Risk is often characterized by reference to potential events (2.17) and consequences(2.18), or a combination of these. NOTE 4 Risk is often expressed in terms of a combination of the consequences of an event (including changes in circumstances) and the associated likelihood (2.19) of occurrenceDI AS/NZS ISO 31000:2009 Risk management - Principles and guidelines