BFF5902 S2 Lecture week 4.pdf - BFF5902 Introduction to Risk Principles Lecture 4 \u2013 Risk Context and Identification Learning objectives \u00a7\u202f Discuss

BFF5902 S2 Lecture week 4.pdf - BFF5902 Introduction to...

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BFF5902 Introduction to Risk Principles Lecture 4 – Risk Context and Identification
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MONASH BUSINESS SCHOOL 2 Learning objectives § Discuss the benefits of risk management standards § Identify the key characteristics of the ISO 31000:2009 Standard § Identify and explain the steps in the risk management process § Identify and explain methods of risk identification § Explain the contents of a risk context statement § Identify and discuss key elements of a risk register § Explain a risk taxonomy, its design and use in risk communication
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Risk Management Standards
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4 Risk Management Standards § A number of standards have been developed worldwide to help organisations implement risk management systematically and effectively. § These global standards seek to establish a common view on frameworks, processes and practice, and are generally set by recognised international standards bodies or by industry groups. § The different standards reflect the different motivations and technical focus of their developers, and are appropriate for different organisations and situations. § Standards are normally voluntary, although adherence to a standard may be required by regulators or by contract.
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5 Benefits of a Risk Management Standard § Standards provide a number of benefits: They generally have been vetted and benchmarked as best practices for decision-making, i.e. tried and tested across many organisations. Common definitions, methods and concepts permit the transfer of skills and learning between organisations, i.e. the profession of risk management and disciplined studies in risk management are encouraged. They provide a benchmark by which organisations can compare their own maturity against others, i.e. use of benchmarking surveys. They provide a stable set of requirements that encourages third parties to develop technological solutions that can be shared across organisations at lower cost, i.e. scalable IT solutions for risk management processes. They are a best practice reference against which the Board, the CEO, auditors and other key staff can demonstrate the application of sound risk management principles and thereby discharge their accountabilities.
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6 Commonly used Global Risk Management Standards ISO 31000 2009 – Risk Management Principles and Guidelines COSO 2004 - Enterprise Risk Management - Integrated Framework A Risk Management Standard – IRM/Alarm/AIRMIC 2002 – developed in 2002 by the UK’s 3 main risk organisations. ISO/IEC 31010:2009 - Risk Management - Risk Assessment Techniques OCEG “Red Book” 2.0: 2009 - a Governance, Risk and Compliance Capability Model
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7 Key characteristics of the ISO 31000:2009 Standard § The ISO standard effectively integrates principles and practices considered most effective by many experts and researchers.
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