An Introduction to the Risk Management Framework

An Introduction to the Risk Management Framework

Welcome to Season 2 of ‘Off the Menu’. Episode 1 introduces you to the ISO 31000 Standards, the guiding principles, and the risk management framework.  In this podcast Pete and I talk about:

  • Why you should care about risk management
  • Making choices around risk
  • Aligning your business to risk management principles
  • Continual improvement in the food industry
  • Appetite for risk
  • Positive impacts associated with risk
  • The minimum level of compliance
  • Implementing a positive risk culture
  • Integrated systems
  • Starting with food safety culture
  • Understanding the ‘Why’
  • Defining an acceptable level of risk in the business
  • Customising your risk management approach
  • Stakeholder input
  • Levels of acceptable risk
  • Evidence-based information to support decision making
  • Reanalysis and reassessment of business systems
  • Implementing a dynamic system
  • Risk management framework
  • Risk is a social activity
  • Structuring the risk management process
  • Who is responsible for risk?
  • Completing a cultural risk assessment
  • Examples for evaluating risk management 
  • Key components of the framework

Adapted Podcast Summary

The following information provides a more structured account of the concepts that both Pete and I spoke about in this podcast. It has been taken from an article that Peter published called Navigating Risk in our Time - Introduction to the Risk Management Framework”

We always have a lot of fun making the podcast so it will be useful to listen in to get real-life and practical examples of the risk management principles and framework.  

Click to Read

ISO 31000 Standard

The ISO 31000 Standard was introduced to give organisations practical guidance on how to manage their risk. This risk can be applicable in any aspect of your organisation, whether it be internal or external, current or prospective. Whatever the case may be, the Standard helps organisations customise their risk management practices to their wants and needs.

The guiding principles of risk management

These principles are the foundation and guiding light for our organisation’s operations and processes, as well as how they relate to our risk management practices and procedures. At the core of these principles is one uniting principle - the creation of value and protection of value.

  1. Continual improvement: this refers to how we leverage our learning experience/s to better develop and improve our current practices and processes.
  2. Integrated: this refers to how well your practices fit within your organisation. Do your risk management practices fit well? Are they cohesive with everything else going on around it? Essentially, is it integrated
  3. Structured and comprehensive: this refers to how well rounded your practices are. Good risk management practices are thorough, of which is usually achieved through a structured and comprehensive approach.
  4. Customised: this refers to whether or not the practices you have are tailored to your organisation’s needs and objectives both internally and externally. Your strategic plan will be helpful here in addressing your objectives.
  5. Inclusive: this principle creates a space for your key stakeholders to be involved with contributing to and developing your risk management practices. In particular, this involvement is to be in a timely manner so you can leverage your stakeholder’s knowledge to strengthen your practices.
  6. Dynamic: this principle refers to the threats that may arise from having stoic risk management practices. It seeks to encourage a responsive and proactive approach to risk management, largely as some risks may emerge, change, or disappear over time.
  7. Best available information: this refers to evidence-based management, and how such evidence should be critically analysed. This includes consideration of the credibility and limitations of current data together with the uncertainties that data may pose. Ideally, such analysis will be based on current and historical data which is relevant, timely, and clear.
  8. Human and cultural factors: this refers to the implications that human behaviour and culture can influence our risk management practices at any and every stage of our organisation. This is all about the people that are working with your risk management practices and procedures.

The risk management framework

The goal of the framework is to help your organisational activities and functions operate effectively alongside your risk management policies and procedures. How successful these two factors will work depends on how well you address and integrate the core components of the framework.

Key components

There are five (5) components that make up the risk management framework. They are:

  • Integration
  • Design
  • Implementation
  • Evaluation
  • Improvement

Integration looks at how we understand all the aspects to our organisation’s structure and the environment in which they operate.

Design refers to how our organisation structures our risk management framework.

Implementation relates to how the risk management framework is to be introduced and rolled-out throughout your organisation.

Evaluation covers how we determine the success of our risk management framework.

Improvement refers to how we are able to identify the shortcomings in our current framework and how we’re able to overcome them through continual improvement and iteration.

To read the full article on “Navigating Risk in our Time” please click here to access

About Off the Menu - Season 2

Risk is inherent in almost everything we do. Risk taking can make us uneasy, or for some, being comfortable with taking risks, can be incredibly empowering.  Join Amanda Evans-Lara and Peter Holtmann for Season 2 of Off the Menu as they explore risk management and how it relates to your business.

Off the Menu Podcast

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