A guide to implementing risk management processes in business has been published.
BSI British Standards said that ‘BS 31100 Code of practice for risk management’ took the broadest view of risk management, and that it was not only concerned with the negative aspects of risk, but also the opportunities it could present to businesses.
A survey carried out to coincide with the launch of the code also painted a healthy picture of risk management among FTSE 250 companies.
It found that 93% of the businesses had both a risk management framework and risk management process in place, while 94% employed a "risk manager" or someone who took overall responsibility for risk.
BSI British Standards said BS 31100 gave recommendations for the model, framework, process and implementation of risk management and established the relevant principles and terminology.
Mike Low, director of BSI British Standards, said: "Publication of BS 31100 could not be more timely. As we have seen in recent weeks, the scale of risk and opportunity among blue chip companies is enormous.
"Businesses of all sizes are operating in a challenging environment – they must manage their opportunities while controlling risk and this will be a fundamental skill to survive these difficult times."
‘Economic volatility’
Mr Low added: "This standard provides a set of clear and simple guidelines which positions risk taking as a positive business facet. It’s very encouraging to see so many businesses engaging with risk and recognising the benefits that can arise from embracing such a framework."
Julia Graham, chief risk officer of global legal practice DLA Piper and chair of the BS 31100 drafting committee, commented: "If you read any CEO survey these days the top answer as to what’s keeping them awake at night will be economic volatility.
"The credit crunch and what has followed has woken boards up to the fact that failures in risk management are fundamental problems 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 and I think it could become a benchmark for organisations that do not want to make the same mistakes others have made."
