BS31100:2008 Risk Management Code of Practice

harveyf — Tue, 22 Dec 2009 21:24:50 +0000

BS 31100 is a highly topical and important standard designed to help private and public sector organisations understand, develop, implement, and maintain appropriate and effective risk management principles and practice. It provides recommendations for a framework, related processes, and implementation of risk management. Using the standard will increase the potential to achieve the successful achievement of risk management objectives and improve business performance.

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

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BS31100:2008 Risk Management Code of Practice