The Australian/New Zealand Risk Standard
The AS/NZS 4360:2004 standard, titled “Risk Management”, provides a comprehensive framework for organizations to identify, assess, and manage risk effectively. It was developed jointly by Standards Australia and Standards New Zealand and applies to all types and sizes of organizations, public or private.
Abstract:
AS/NZS 4360:2004 outlines principles and guidelines for managing risk systematically and consistently. The standard emphasizes integrating risk management into organizational processes to enhance decision-making and achieve objectives. It includes the following key elements:
- Establishing the Context: Understanding the external and internal environment and defining the scope and criteria for risk management.
- Risk Identification: Recognizing risks that could impact the achievement of objectives.
- Risk Analysis: Evaluating the likelihood and potential consequences of identified risks.
- Risk Evaluation: Comparing risks against pre-determined criteria to prioritize actions.
- Risk Treatment: Developing and implementing strategies to mitigate, transfer, avoid, or accept risks.
- Monitoring and Review: Continuously assessing the risk environment and the effectiveness of controls.
- Communication and Consultation: Ensuring stakeholders are informed and engaged throughout the risk management process.
Significance:
AS/NZS 4360:2004 serves as a foundation for many modern risk management standards, including ISO 31000, which later replaced it. It promotes a systematic approach to risk management, enabling organizations to proactively address uncertainties and improve resilience.
This document is no longer current, as it has been superseded by ISO 31000:2009 and subsequent revisions. However, it remains an essential historical reference for understanding the evolution of risk management practices.
Original Article Source: “Australian/New Zealand Standard Risk Management“, Joint Technical Committee OB-007, Risk Management, August 2004
