Risk Management Software and AS/NZS 4360

AS/NZS 4360 - A brief overview

AS/NZS 4360 is a generic guide for risk management so that it applies to all forms of organizations. Risk management" is defined as 'the culture, processes and structures that are directed towards realizing potential opportunities whilst managing adverse effects.'

The model of the risk management process AS/NZS 4360 consists of three major elements. The risk management workflow, monitor and review, and finally communication and consult. The later two continuously interact with the steps of the risk management workflow.

The elements of the AS/NZS 4360 risk management process in more detail:

Establish the Context: It is necessary to fully understand the external and internal aspects of the organisation or organisational part which is subject to risk management.
Identify Risks: This step shall uncover risks, their location, timeframe, root causes, and scenarios.
Analyse Risks: The output of risk analysis is the likelihood of a risk and the consequence in case of risk occurrence.
Evaluate Risks: Risk analysis provides an outcome which is basis for decision making which risks need treatments and in which priority.
Treat Risks: Treatments are responses to risks. Alternative treatments need to be identified, assessed, selected, planned, and implemented.
Monitor and Review: This step shall ensure that the risk management plan remains relevant and all input data, including likelihood and consequence, are up-to-date. Monitor and review relates to all of the above five elements of the risk management workflow.
Communication and Consult: Successful risk management relies on communication with all stakeholders. Communication will improve the level of understanding and treating risks. Communication is important throughout the entire risk management cycle.

AS/NZS 4360 and Enterprise Risk Register®

Enterprise Risk Register® is a valuable tools to improve the risk management in a cost efficient way.

Enterprise Risk Register® assists you to collect all risks identified in its risk log or risk register. It helps you to provide consistency across a project and even the entire organisation.

Enterprise Risk Register® supports qualitative risk assessments and provides the ability to record, sort and filter data by all its characteristics.

And Enterprise Risk Register® allows you to collect treatments against the risks and analyse the effect of implementing the treatments. This way it demonstrates successful risk management leading to cost reduction.