For many thousands of years before we’d ever put capital letters on the term Risk Management, people were already managing their risks – albeit a different set of risks from those we face today. On the day man lit his first fire he quickly worked out what the new hazard was that he had created, and how best to prevent himself and others from getting hurt as a result.
Risk management in its most basic form means being able to understand what things might happen to you that you don’t want to happen, and how you are going to try and prevent them or at least reduce the chance of them occurring.
People did this long before Risk and Risk Management as fields of study were even invented – they just didn’t have formal processes and templates for doing it.
Australia helped pioneer the concept of a Risk Management Standard, with the development of the original Australia Standard for Risk Management – AS4360. The effectiveness and success of this standard led to it becoming the foundation for a new International Standard for Risk Management, developed by the International Organisation for Standardisation (ISO).
In November 2009, the ISO released the latest version of their Risk Management Standard, ISO 31000. The standards committee for Australia and New Zealand determined that instead of maintaining a separate Australia Standard for risk management, they should instead adopt the international standard.
Hence, from this year, AS4360 is now no longer the relevant standard for Risk Management in Australia, we now work under ISO 31000. Continue Reading