Risks And Risks Of Risk Management Practices

1360 Words Sep 27th, 2014 6 Pages
The aim of risk documentation is to provide security and information to users, such as management, so that they can make effective decisions (HB 436:2013, pp. 88). AS/NZS ISO 31000:2009 is the standard for risk management principles and guidelines in Australia (HB 436:2013, pp. 2). HB436:2013 provides guidance to the application of AS/NZS ISO 31000:2009 (HB 436: 2013, pp.2). In 2013 HB436:2004 was updated, one of the new changes states that risk management practices should be able to traceable, however, a complete log or record of risks is not necessarily required (HB436:2013, pg. 88). This essay will discuss the potential risks and potential decrease in risks which may result due to more flexible documentation options.

Many managers make the mistake of thinking of the risk record as the main purpose of risk management practices, however, it is actually designed for an organisation to gain a good understanding of their risks and to remain within their criteria of risks (HB 436:2013, pp. 88). An organisation needs to decide whether the information will be of use in the future, when deciding whether or not to implement a risk log (HB436). However, it could be argued that an organisation cannot clearly understand their risks and risk criteria without having a detailed log book.

Risk management should be comprehensive and transparent and stakeholders should be involved in identifying risks (ISO AU/NZS 31000:2009, pp. 8). This could be difficult for organisations to achieve if…

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