BS 31100 is a key standard for risk management. It gives you an understanding on how to develop, implement and maintain effective risk management within your business. Using BS 31100 effectively can help you increase your company’s effectiveness.

Organizations of all types and sizes face a range of risks affecting the achievement of their objectives. While “risk” is normally regarded as negative, risk management is as much about exploiting potential opportunities as preventing potential problems. It is important to bear this in mind whenever managing risk, and in reading this standard. Risk management is an essential part of good management.

Effective risk management help you achieve your objectives by:

* Reducing the likelihood of events that would have a negative impact on your business
* Increasing the likelihood of events that would have a positive impact on your business
* Identifying opportunities where taking risks might benefit your business
* Improving accountability, decision making, transparency and visibility
* Identifying, understanding and managing multiple and cross-organization risks
* Executing change more effectively and efficiently and improving project management
* Providing better understanding of of governance, legal and regulatory requirements
* Protecting your revenue and enhancing value for money
* Protecting your reputation and stakeholder confidence
* Proactively managing your organization’s operations
* Controlling expenditure and delivering a cost-optimal control environment
* Retaining and developing customers by being more flexible and responsive to their needs.

The benefits of good risk management (and the consequences of poor risk management) will be felt by you, your staff, shareholders, customers and other stakeholders.

BS 31100 provides recommendations for the framework, process and implementation of risk management and should be used for:

* Ensuring that your business achieves its objectives
* Ensuring risks are proactively managed in specific areas or activities
* Overseeing risk management in your company
* Providing assurance on your risk management strategy
* Reporting to stakeholders

BS 31100 establishes the principles and terminology for risk management. It also gives recommendations for the model, framework, process and implementation of risk management gained from experience and good practice.

This key standard for risk management is useful to CEOs, CFOs, CROs, CIOs, COOs and CTOs; chairmen and company secretaries; managing, IT and finance directors; risk, insurance, claims and business continuity managers; information security specialists; underwriters; Health and Safety officers; and heads of legal affairs.

Contents:

Foreword
Introduction
Scope
Risk management principles
Risk management framework
Risk management process
Developing risk management activities

Annexes
Annex A (informative) risk categories
Annex B (informative) risk management tools
Annex C (informative) Effects of controls
Annex D (informative) risk maturity models
Annex E (normative) incorporating potentially positive consequences of risk
Glossary

Related Links

INform / Issue 19 / BS 31100 ezine

Friendly: soft Discussion and meeting on the first British…IHS Engineering

Insurance Networking News — New York,NY,USA

New risk management standard published

What is BS31100?

Many companies do not actively manage and monitor their Chinese suppliers and most lack the ability to fully trace faulty imported goods or replace their suppliers in a crisis, according to a recent survey.

The Quality Executive Board (QEB) announced the results of a survey, Supplier Quality Management Practices for China, which highlights best practices and major risks for companies sourcing from China.

The Board’s analysis reveals that there is still no substitute for having a good team on the ground: Companies who are most confident about their Chinese suppliers rigorously screen and qualify those suppliers. In-person plant visits are universally popular and viewed as highly effective. While all respondents agree that the most effective way to monitor suppliers on a continuous basis is to have company staff placed at the Chinese supplier, only 17% of companies employ this method.

Other key findings include:

Nearly 20% report that the cost of sourcing from China can at times exceed the savings: One-fifth of companies report the total costs of managing and ensuring supplier quality in China frequently or occasionally exceed the labor cost savings.

Only about a quarter of companies have contingency plans to replace their Chinese suppliers: Companies voiced significant concerns with Chinese suppliers, including poor product quality, loss of data privacy, intellectual property violations, and reputation risks such environmental pollution, product safety issues and human rights violations. Yet most had no contingency plans in place to replace their Chinese suppliers or could only replace some of their Chinese suppliers in the event of a crisis.

Companies have great difficulty maintaining traceability of goods sourced from China: Only a quarter of respondents report certified full traceability down all tiers of their supply chain.

CEB Program Director Peet van Biljon says, “The research suggests that no company can be complacent about the products and materials they source from China; we are just beginning to understand the full magnitude of the Chinese sourcing problem.”