RISK

MANAGEMENT
STANDARDS
Scope of Risk Management Standard
The first was developed by the standards body in Australia
in 1995, and has been followed by those being developed
in Canada, Japan, the UK and the United States.

• A risk management standard sets out the overall

approach to the successful management of risk,
including a description of the risk management
process.

• is the combination of a description of the risk

management process, together with the
recommended framework.
Risk
management
context
All of the established risk management
standards refer to the risk management
framework, although this is represented
in different ways. In order to provide a
simple explanation of the scope of the
risk management framework, the
acronym risk, architecture, strategy and
protocols (RASP) has been developed.
In implementing and supporting the risk
management process, the risk management
framework needs to facilitate communication and
the flow of risk information. The risk management
framework has two separate considerations.

Firstly, it must be supportive of the risk

management process and,
secondly, it must ensure that the outputs from the
process are communicated into the organization
and achieve the anticipated benefits for the
organization.
Coso ERM
cube
This enterprise risk management framework is
geared to achieving corporate objectives, set out
in four risk categories:
●●strategic: high-level goals, aligned with and
supporting its mission;
●●operations: effective and efficient use of its
resources;
●●reporting: reliability of reporting;
●●compliance: compliance with applicable laws
and regulations.
ESTABLISHING
THE CONTEXT
scope of the context
ISO 31000 states that the first stage in the risk management
process is to establish the context. The former Australian
Standard AS 4360 referred to context as having three
components, in addition to the risk management process. These
components are the risk management context, internal context
and external context.