New risk management standard to help businesses meet ASX requirements (2004-09-14)
To help organisations meet the ASX Corporate Governance Council’s recommendations, Standards Australia has revised and re-issued the Australian Standard® for risk management.
The new Australian Standard® titled AS/NZS 4360:2004 Risk Management, which is published by SAI Global, encompasses all forms of risk management within a consistent terminology and through the adoption of one, comprehensive process.
The Chief Executive Officer of Standards Australia, Mr John Tucker, said: “The publication of the new risk management standard comes following the recent call by the stock exchange for organisations to demonstrate compliance with its corporate governance recommendations.”
“Organisations that follow the new Australian Standard® and that base their risk management processes on the detailed best-practice methods in the accompanying handbook will ensure that their forms of risk management are optimal and most effective,” said Mr Tucker.
According to the Manager of Group Risk Management at BHP Billiton, Mr Grant Purdy: “The Australian Stock Exchange listing rules now require companies to make a statement in their annual reports as to the extent to which they have adopted the recommendations of the ASX Corporate Governance Council.”
“These include the establishment of a sound system of risk oversight and management and internal control. Adopting the new AS/NZS 4360 provides the best means to achieve this,” said Mr Purdy.
“The new AS/NZ 4360 truly sets a new standard for all forms of risk management in all sorts of organisations. It also provides a challenge to those that think that they are doing good risk management now”
“All organisations and risk management practitioners should now check out their own practices, conduct a gap analysis and revise their risk management plans accordingly.”
“In particular, those that sell risk management software should ensure their products really do support proper, effective risk management and are consistent with the new Standard.”
“Those organisations that build risk management processes that follow the new Standard will also provide themselves with the means for achieving significant strategic and tactical advantage.”
“They will be acting to ensure that shareholder and stakeholder interests are both protected and enhanced - by managing the risk in risk management.”
To purchase to Australian Standard®, titled AS/NZS4360-2004 Risk Management, contact SAI Global on 1300 65 46 46 or visit www.standards.com.au.
For further information about Standards Australia please visit www.standards.org.au or phone +61 2 8206 6000.
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Media Inquiries – Tom Godfrey - Standards Australia
Ph: (02) 8206 6863 Mb: 0414 191 034 Em: tom.godfrey@standards.com.au
Standards Australia is a not-for-profit organization with 72 Members and is an internationally recognised leader in the facilitation of standardization solutions. Through its consensus based process, which sees agreement reached between more than 9000 technical committee representatives from industry bodies, trade associations, government and consumer groups, it develops Australian Standards® to benefit the whole community.