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7. CEN standards (these will be adopted as British Standards under mandatory procedures) |
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Hot on the heels of a traumatic period in the finance industry, with millions suffering loss of wealth, billions suddenly wiped off the values of assets, and trillions injected into failed industries, it is perhaps appropriate that BSI should now offer guidance. A new standard BS 31100 Code of Practice for Risk Management 'provides a basis for understanding, developing and maintaining proportionate and effective risk management within any organisation to enhance the likelihood of successfully achieving objectives.' BSI say "Organisations of all types and sizes face a range of risks. While 'risk' is commonly regarded as negative, risk management is as much about exploiting potential opportunities as preventing potential problems. It is important to bear this in mind whenever managing risk, and in reading this Code of Practice. Risk management is an essential part of good management." Some might, of course, argue that Special Investment Vehicles and Collateralised Debt Obligations are not products at all, and are therefore not covered by BSI's (and ISO's) remit. Others might regard British Standards as something to do with trade, and nothing whatever to do with the world of finance. A cautious one cheer might be in order, though, to mark the introduction of the new standard. Better late than never. BS 31100 has its own web-site at www.bsigroup.com/bs31100. |
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Where prices are quoted, they are the prices from BSI (www.bsi-global.com) at their non-member rate. Special prices apply to members of the Association ordering through Eden Court (gensec@occa.or.uk).
Peter Munn - November 2008 |