Overview
Risk management is designed to seek the right balance between the recognition of opportunities for gains and the reduction of losses. It is a crucial aspect of solid management practices and also an essential element of good corporate governance.
The AS/NZS 4360 Standard offers generic orientations for risk management. It can be applied to a wide range of activities, decisions or operations of any public, private or community entity, as well as those of groups or individuals. It is an encompassing instruction, but one that allows for the definition of specific objectives based on the needs of each implementation.
Benefits
The main benefits of AS/NZS 4360 for companies include:
- Standardization of the risk management practice between the different areas of the company.
- Implementation of risk evaluation and process revision mechanisms.
- Implementation of control and treatment mechanisms.
- Reduced risks inherent to corporate processes.
- Reduced costs associated with risks.
In addition to these benefits, the application of AS/NZS 4360 guarantees the organization a solid base for the application of any other risk management standard/methodology used specifically for a certain segment.
The Challenge
The problems and challenges associated with the AS/NZS 4360 Standard are directly associated with its main objectives and are listed below:
- Unusual and unstable base for decision making and planning.
- Difficulty identifying opportunities and threats.
- Reactive management.
- Inefficient resource allocation.
- Losses and costs with risk events.
- Lack of security and trust among the parties involved.
- Problems conducting corporate governance.
The identified problems can be reduced by adopting an integrated and automated management system that provides all the support necessary for continuous improvements and process control and performance.
The SoftExpert ISOSYSTEM solution offers tools for the complete management of the organization’s risks in compliance with the AS/NZA 4360 Standard while also meeting the specific needs of each application. All of this in a collaborative and integrated environment that guarantees the standardization and correct use of information to obtain excellence in risk management.
ISOSYSTEM Compliance Mapping
Each ISOSYSTEM module meets the key requirements of AS/NZS 4360, as shown below:
| ISOSYSTEM Module |
AS/NZS 4360 Requirements |
Document |
- Maintains the documentation generated during the AS/NZS 4360 process secure and centralized so that it can be accessed by users and auditors practically anywhere.
- Automates forwarding, revision and approval, among other activities, boosting the team’s efficiency.
- Allows changes to be easily traced.
- Provides external auditors the means to recover and locate documents easily and quickly, saving time.
- Guarantees that the history of conformities, revisions, etc., is always available.
- Guarantees that only the latest version of the document is used, avoiding the use of obsolete documents.
|
Action |
- Guarantees that all proven risk events are recorded and managed.
- Guarantees that the non-conformities are found and their causes corrected.
- Provides ways of evaluating the effectiveness of corrective actions.
- Guarantees that the corrective action is planned and implemented.
- Ensures that those responsible for the corrective actions are well defined.
- Maintains records for the control and monitoring of all actions.
- Allows for the correction of any type of defect to prevent future problems in the products and processes.
- Maintains an event history to assist with the revision of the risk plan.
|
Audit |
- Provides support for audit planning and implementation.
- Communicates the audit result to all managers or those involved.
- Guarantees that all information and data found during the audit are recorded.
- Manages any corrective action required.
- Guarantees that the corrective actions are implemented within the planned time period.
|
Process |
- Guarantees that the processes that will undergo risk evaluation are defined, planned and documented.
- Guarantees that the processes are monitored and controlled.
- Guarantees trackability.
|
Risk |
- Manages business and operational risks.
- Facilitates the identification of process, project, product and asset risks, among others.
- Allows for the elaboration of risk evaluation methods based on quantitative, qualitative and matrix criteria, providing evidence for the organization’s appetite for risk.
- Automates the application of risk evaluations.
- Facilitates the identification and evaluation of risk-related controls.
- Determines the residual evaluation risk, identifying the treatment options and their application.
- Ensures the continuous monitoring and revision of the risk management process.
- Guarantees the communication with and easy access to evaluations.
- Guarantees the recording of entire risk management process.
|
Project |
- Guarantees that the projects to undergo risk evaluation are defined, planned and documented.
- Operationalizes the treatments applied to risks.
- Guarantees the distribution and execution of activities, managing the effort and deadline of the same.
- Guarantees that the history of each project is always available.
- Allows for the evaluation of the implemented project and full communication with stakeholders.
|
Industries
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