An integrated management system is a combination of the processes, procedures and practices used within an organisation to implement the organisation’s policies, and which may be more efficient in delivering the objectives arising from these policies than multiple systems.

Operational risk is the risk associated with business processes. In general operational risk can be categorised into four overlapping areas:

Quality – the risk of supplying a nonconforming product or service, to a customer.

Safety – the risk of supplying an unsafe product or service to a customer, and/or injuring workers during production.

Environment – the risk of supplying an environmentally damaging product to a customer, or damaging the environment during production or provision of a service.

Security – the risk of being subjected to criminal activity during provision of a product or service.

The following Australian Standards form the basis and guidance material for an Integrated Risk Management System, which will provide effective management of Operational Risk, in both project-based organisations and those involved in continuous production.

The system will provide a basis for organisational development by facilitating the empowerment of employees. It will promote implementation of organisational policy, and assure the consumer that the organisation is capable of meeting his/her wants and needs.

1. AS/NZS 4360 – Risk Management. AS/NZS 4360 provides a generic framework for establishing the context, identification, analysis, evaluation, treatment, monitoring and communication of risk.

It defines risk magnitude in terms of likelihood of an incident occuring (probability), and the consequences of the incident (severity). This aspect of risk is used to rate risks and prioritise treatment and financial expenditure on controls.

(An associated standard AS/NZS 3931 – Risk analysis of technological systems, provides valuable guidance for applying risk management to safety aspects of equipment.)

2. AS/NZS 4581 – Management system integration – Guidance to business, government and community organisations. This standard identifies components that are common to all management systems and provides an overview of those components. It does not replicate or replace existing management requirements, but is intended to assist organisations implement the common components of the systems in their individual organisations or organisational level. It identifies areas, which enable management to reduce duplication and complexity in their system.
3. AS/NZS ISO9001 – Quality management systems – Requirements. This standard specifies requirements for a quality management system that can be used by an organisation to address customer satisfaction, by meeting customer and applicable regulatory requirements. It can also be used by internal and external parties, including certification bodies, to assess an organisation’s ability to meet customer and regulatory requirements.
4. AS 4801 – Occupational heath and safety management systems – specification with guidance for use. The objective of this standard is to set auditable criteria for an occupational health and safety management system.
5. AS/NZS ISO14001 – Environmental management systems – specification. The objective of this standard is to set auditable criteria for an environmental management system.
6. AS/NZS 4444 – Information security management. Gives recommendation for information security management.
7. AS/NZS ISO 9004.1 – Quality management systems – Guidelines for performance improvement. This standard provides guidance on quality management systems including processes for performance improvement and satisfaction of customers and other interested parties.
8. AS/NZS 3905.16 – Quality system guidelines – Part 16 Guidelines to quality in project management. It is recognised that there are two aspects to the application of quality in project management – the quality of the project processes, and the quality of the project product. A failure to address either of these dual aspects may have significant effects on the project product, the project stakeholders and the project organisation.