Question

1. Discuss the aims and objectives of ISO31000: 2009 risk management standard.

2. Describe the role of senior management in terms of its commitments to risk management systems

Answer 1

1 Answer :- Aims and objectives of risk management standard are as follows:-

(a). ISI 31000 :2009 provides generic guidelines on risk management, it is not intended to provide uniformity of risk management across the organisation.

(b). ISI 31000 : 2009 can be applied to any type of risk whether inherent, control or detection Risk irrespective of its nature, whether having positive or negative consequences.

(c). ISI 31000 : 2009 can be applied throughout the life of the organisation.

(d). It applies to a wide range of activities, including strategies and decisions, operations, functions, process, project, services and assets.

(d). It is not specific to any industry or sector. It can be used by any private, public, community enterprise, association, group or individual.

(e). It is intended that ISI 31000 : 2009 can be utilised to harmonise risk management processes in existing and future standards.

(f). It is not intended for the purpose of certification.

(g). It provides a common approach in support of standards dealing in specific risks or sectors and doesn't replace those standards.

2 Answer:- The role of senior management in terms of commitment to risk management systems are as follows:-

(a). They should have a mechanism to deal with unexpected difficulties.

(b). Senior management should be aware of how the success of the organisation with respect to the safe operation of the system both in internal and external environment which depends largely on the ability to monitor and continously improve the effectiveness of risk control measures.

(c). They should seek the workforce views on safety issues and promote safety.

(d). They should conduct regular safety communicationsign such as listening or responding to safety issues raised by the staff.

(e). Developing two way communication with the staff

(f). To identify the risk among those issues and develop the strategies to eliminate or mitigate them.

(g). To monitor and measure the performance of the organisationsale effectiveness in avoiding the risk involved and also managing the risk.

(h). As it is rightly quoted by Warren Buffett "Risk comes not knowing what you are doing". Senior managementshould have high level of thinking, planning, executive intervention or policy guidance.

(i). They should create an effective risk management framework ensuring that the board members are completely involved into it.

(j). They should dedicate regular sessions in planning and evaluating the risk management effectiveness.

(k). They should test the responses through audit and desktop or active rehearsals to provide the board with assurance of risk management capability.

(l). Above all the menationed roles and responsibilities senior management is mainly held liable and accountable for all the aspects of managing the organisations risks.