Australian Standards for Risk Management
Standards Australia have released a risk management handbook "Guide for managing risk in not-for-profit organisations" (HB 266:2010 ).This book is available from SAI Global Limited.
Used in conjunction with the Australian and New Zealand Standard AS/NZS ISO 31000:2009 for Risk Management, the handbook provides:
- A globally accepted framework and language for recognising and responding to uncertainty that generates risk for not-for-profit, non-profit and non-government organisations.
- A systematic and straightforward process for understanding the organisation’s risks and ensuring that the amount and type of risks it faces are desirable or tolerable.
- A practical process and tips on how to integrate and sustain AS/NZS ISO 31000’s systematic approach to risk management, including basic tools and templates and an informative case study.
The handbook has sections on:
- Managing risk effectively
- AS/NZS ISO 31000, Principles and guidelines for risk management
- Gap analysis
- Framework: Ensuring an effective framework for managing risk
- process: Ensuring an effective proces for managing risk
- Risk management reporting
About risk management reporting
The Australian Standards for Risk Management provide assistance on the documeting of risks including assumptions, methods, information sources and results.
for risk managment reporting are as follows:
demonstrate the process is conducted properly.
provide a record of risks.
provide the relevant decision makers with a risk management
plan for approval and subsequent implementation.
provide an accountability mechanism and tool.
facilitate continuing monitoring and review
provide an audit trail; and
share and communicate information
of Risk Management Reporting
required to be maintained should be stated in the risk management policy.
Documentation should included:
- The Risk Management Policy that includes the processes and procedures by which the organisation identifies, manages and monitors risks.
- A statement by the management committee of how the organisation is complying with the Australian Standard for Risk Management
- The register of risks
- Risk treatment schedule and action plan
- Records and results of risk monitoring processes and procedures carried out
- Documents showing the outcomes of audits including details of follow actions taken.
Compliance by Sport Organisation
Sport and recreation organisations are largely run by volunteers. This has an impact on the ability of the organisation to comply with Australian Standards for Risk Management. Nevertheless risk management must be a very high priority for the management committee. It may take some time for the management committee to develop appropriate systems, procedures and practices for risk management. Therefore a process of continuous improvement (taking a number of small steps) should be undertaken. The best strategy is to make risk management a permanent agenda item at committee meetings. This will go a long way to ensuring that progress is made and that the diligence of the management committee is not called into question.
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