Fundamentals of Risk Management

Alternative approaches
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TAbLE 
9.1
Summary of King III risk requirements
risk management responsibility
1
Board is responsible for governance of risk.
2
Board is responsible for determining the levels of risk tolerance and risks it is 
willing to take (risk appetite).
3
Board should be assisted in carrying out its risk responsibilities by the risk 
committee or audit committee.
4
Board should delegate to management the responsibility to design, 
implement and monitor the risk management plan.
5
Board should ensure that risk assessments are performed on a continual basis.
6
Board should ensure that frameworks and methodologies are implemented 
to increase the probability of anticipating unpredictable risks.
7
Board should ensure that management considers and implements appropriate 
risk responses.
8
Board should ensure continuous risk monitoring by management.
9
Board should receive assurance regarding the effectiveness of the risk 
management process.
10
Board should ensure that there are processes in place to ensure complete, 
timely, relevant, accurate and accessible risk disclosure to stakeholders.
structure of management standards
ISO has produced guidance on the required structure of management system standards. 
This guidance is referred to as Annex SL and a number of existing standards have 
already been converted to this format, including ISO 14001:2004 ‘Environmental 
Management Systems – Requirements with Guidance for Use’. Also, ISO 22301:2012 
‘Societal Security – Business Continuity Management’, which is discussed in more
detail in Chapter 18, has been migrated to this new structure.
Major clause numbers and titles of all management system standards will become 
identical, once Annex SL has been adopted for standards. Following the introduction 
section, management system standards that comply with Annex SL will be structured 
with the following clauses: