International risk management standard approved
MELBOURNE, Australia—Members of the International Organization for Standardization have endorsed the first international standard for risk management.
The ISO 31000:2009 standard will be available in October, after finalization of the ISO Guide 73:2009 of international standards, said Kevin W. Knight, convener of the ISO Working Group on Risk Management and a director with the Risk Management Institution of Australasia in Melbourne, Australia.
The ISO standard draws heavily from a standard used by the Standards Australia/Standards New Zealand Joint Technical Committee on Risk Management, which has already approved adoption of the standard AS/NZS/ISO 31000:2009 to replace its AS/NZS 4360:2004 standard, Mr. Knight said in an e-mail. The Australia-New Zealand version of the new standard should be available in about six weeks, he said.
The standard is aimed at giving risk managers, particularly those with multinational organizations, an approach that is more applicable to their operations than the Australia-New Zealand standard, which was written with a regional focus, industry officials said late last year.
The international risk management standard provides generic guidelines that can be used by any industry or organization, and is applicable to all risks, according to ISO. It, however, is not intended to provide any type of certification.
From Wikipedia, the free encyclopedia
ISO 31000 is a family of standards relating to risk management codified by the International Organization for Standardization. The purpose of ISO 31000:2009 is to provide principles and generic guidelines on risk management. ISO 31000 seeks to provide a universally recognised paradigm for practitioners and companies employing risk management processes to replace the myriad of existing standards, methodologies and paradigms that differed between industries, subject matters and regions.
Currently, the ISO 31000 family includes:
- ISO 31000: Principles and Guidelines on Implementation
- IEC 31010: Risk Management - Risk Assessment Techniques
- ISO/IEC 73: Risk Management - Vocabulary
What's New: In Brief
The Risk and Insurance Management Society (RIMS) has formed a committee to increase its profile in the standards and practices arena and make it the primary resource in shaping and developing risk management standards.
Carol A. Fox, past chair of RIMS ERM development committee, will chair the RIMS standards and practices committee.
Wayne L. Salen, member of RIMS board of directors, serves as the first board liaison for the committee.
Initial tasks of the committee include educating risk managers and organizations on various risk management standards, including ISO 31000 and Guide 73, a release says.
“RIMS will now be in a position to more significantly influence the development of risk management-related standards and practices,” Salen said in the release.
“For example, RIMS was actively involved in the development of the ISO 31000-Risk Management Principles and Guidelines through the U.S. technical advisory group, which was recently adopted.”
U.S. commercial property and casualty rates experienced a composite rate reduction of 6% in July 2009, the same as June 2009, reports MarketScout, an online U.S. commercial insurance exchange.
In July 2008 rates had decreased 11%.
“Many insurance brokers expected tighter terms and increased pricing after the July 1 treaty renewals,” said Richard Kerr, MarketScout’s CEO. “Generally speaking, it didn’t happen. July 1 renewals were a bit tougher for property cat risks but most reinsurance treaties were placed without much trouble. We are still in a prolonged soft market.”
By coverage class, general liability had the greatest rate reduction in July at -7%. D&O had the least at -2%, MarketScout reported.