Less risky business

BS 31100 Code of practice for risk management has been published by BSI, establishing principles and terminology for risk management, and offering recommendations for the model, framework, process and implementation of a risk management system.

"If you read any CEO survey these days, the top answer as to what's keeping them awake at night will be economic volatility," says Julia Graham, chair of the BS 31100 drafting committee.

"The credit crunch and what has followed has woken boards up to the fact that failures in risk management are fundamental and part of the reason why they are in the position they are in now.

"BS 31100 raises the profile of risk management at just the right time. It could become a benchmark for organizations that do not want to make the same mistakes as others."

The standard can be used by organizations of any size and in any sector as a basis for developing, implementing and maintaining effective risk management.

And it's not just about avoiding risk: according to research conducted by BSI, businesses in the UK are still prepared to take risks despite testing economic times. According to the BSI British Standards annual Business Barometer, 74 per cent of the FTSE 250 surveyed in 2008 reported no difference in the willingness of their company to take risks now compared with 12 months ago. Only 15 per cent thought that their organization would be less disposed to risk taking.

The survey also found that 87 per cent believe that risk management protects revenue and enhances value for money, while 71 per cent of organizations surveyed view risk taking as a positive activity.

For more information: www.bsigroup.com/jan09bs31100

Business Standards © 2010. Editorial produced by Caspian Publishing in association with The British Standards Institution. Editorial opinions expressed on are not necessarily those of BSI Group or Caspian Publishing. Neither Caspian Publishing nor BSI Group accept responsibility for advertising or editorial content, nor for that appearing on linked third-party websites. Reproduction in whole or in part is forbidden without written permission from BSI Group or Caspian Publishing.