 During the period of 2004 to 2009, the Australian-New Zealand standard for enterprise risk management (AS/NZS 4360) was converted to a global ERM standard known as ISO 31000. In this section, we take a closer look at this five-year period that would propel ISO 31000 into becoming the most well-known standard for creating and implementing an ERM framework within organizations. In light of the COVID-19 crisis, we are postponing publication of Part III of our conversation with Kevin Knight on the history of ISO 31000 and ERM in order to bring you this important guest essay by Matt Warnock and Sommer Sheely, attorneys with Bricker & Eckler, who discuss the application of force majeure to business disruptions caused by the pandemic. Part III of our Conversation with Kevin Knight tells the story of how the Australian/New Zealand standard for enterprise risk management became an international standard known as ISO 31000. Long before the COVID-19 pandemic, the field of standardization worked to develop a useable framework to help organizations manage risk and uncertainty in a holistic way. This article traces the conversion of AS/NZS 4360 to ISO 31000 which began in the late 1990s with an interim step to build a basic vocabulary of terms associated with managing risk. The story of ISO 31000 – the best known ERM Standard – begins in 1992 with the collaborative effort of Standards Australia and Standards New Zealand. This article focuses on the important work between 1992 and 2004 by these organizations and how their ERM model known as AS/NZS 4360 became the foundation of ISO 31000. Part II of our Conversation with Kevin Knight provides an inside look at how Australia and New Zealand developed the first standard for enterprise risk management known as AS/NZS 4360.Pre-Tender Defense Costs Are Recoverable If There Is No Appreciable Prejudice For Late Notice2/4/2020  A New Jersey trial court recently held that pre-tender defense costs are recoverable if the insurance company fails to establish that it suffered appreciable prejudice as a result of late notice of a claim. Policyholders can use the rationale of this decision to rebut insurance company arguments that they should not pay any pre-tender defense costs for claims where late notice is an issue. Kevin Knight, a pioneering figure in risk management, joins us from Australia to share the history of ISO 31000, the best known standard for enterprise risk management. In Part I, Kevin shares some insights from his involvement to create the first national standard on ERM in the 1990s and how AS./NZS 4360 became ISO 31000. Developed over a four period from 2004 to 2009, ISO 31000 has become the national ERM standard in over 50 countries and has been translated into 23 languages. The story of ISO 31000, however, begins in 1992 when Standards Australia announced the first public enquiry on the feasibility of creating an ERM framework. This article begins sharing the important work between 1992 and 2004 in Australia and New Zealand that would serve as the foundation for ISO 31000. |
AuthorsLori Siwik and Mark Siwik are the founders of SandRun Risk. They apply the principles of vertical leadership and lean six sigma to the discipline of risk management. From time to time they share their blog with guest authors who write about important risk management principles. Categories
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