A written report that evaluates and assesses an organisation (University of Canberra) in regard to the AS/NZS ISO 31000 (or ISO 31000) ‘Risk Management Framework’

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EVALUATE AND ASSESS AN ORGANISATION (UNIVERSITY OF CANBERRA) CONCERNING THE AS/NZS ISO 31000 (OR ISO 31000) ‘RISK MANAGEMENT FRAMEWORK’

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Table of Contents TOC \o "1-3" \h \z \u Introduction PAGEREF _Toc192911083 \h 3Literature Review on Risk Management PAGEREF _Toc192911084 \h 3Application of the ISO 31000 Framework at the University of Canberra PAGEREF _Toc192911085 \h 4Integration of Risk Management into Organisational Activities PAGEREF _Toc192911086 \h 6Practical Applications and Recommendations PAGEREF _Toc192911087 \h 6Conclusion PAGEREF _Toc192911088 \h 7Reference List PAGEREF _Toc192911089 \h 8

Introduction

One of the critical functions of higher education institutions is risk management, which aims to provide universities with stability, sustainability, and resilience to financial, operational, and regulatory uncertainties. With its expanded territory, universities are exposed to financial constraints, cyber security risks, compliance concerns with changing regulations, and security of student learning space, amongst others. ISO 31000:2018 Risk Management Framework gives an organized, standards-driven approach to risk discovery, threat appraisal, and risk treatment, guiding choices and improving institutional administration (IRM, 2018). As a leading Australian institution, the University of Canberra (UC) has adopted a defined risk management strategy incorporating the ISO 31000 framework into governance and operational activities (University of Canberra, 2018). The effectiveness of UC’s risk management framework was critically assessed concerning ISO 31000:2018 for its structure of governance, risk controls, and leadership commitment. The study also identifies the key challenges and makes informed recommendations to achieve long-term institutional resilience and sustainability.

Literature Review on Risk Management

According to ISO 31000:2018, risk management is the coordinated activities that direct and control an organization regarding risk. It comprises identifying, assessing, and prioritizing risk while deciding what steps to take to prevent possible negative effects (Putri & Wijaya, 2023). Effective risk management gives firms a strategic advantage in decision-making; it helps firms anticipate uncertainty, allocate resources sufficiently, and remain sustainable in the long run. In recent years, risk management has moved from the basic financial risk assessment to a full-scale enterprise risk management (ERM) system requiring integrated risk management across various organizational functions.

According to Vargas and Campos (2022), ISO 31000:2018 consists of core principles for risk management, namely integration, structured and comprehensive approaches, feasible customization, inclusiveness, dynamism, human and cultural aspects, the use of best available information, and continual improvement. The standard is flexible and has a structured methodology suitable for various institutional circumstances. Comparing COSO ERM and ISO 31000:2018, ISO 31000:2018 enables more customization, whereas COSO offers more practical implementation guidance (Chege, Wanyembi, & Nyamboga, 2023). This flexibility is key for organizations working under moving sands and needing unique risk management approaches.

As a vital part of operational management in higher education institutions (HEIs), risk management is becoming more important because of financial, operational, compliance, and reputation risks in higher education institutions (HEIs). Studies at Gadjah Mada University and Indonesian public universities suggest aligning ISO 31000:2018 with institutional goals leads to sustainability (Sari & Setyaningrum, 2022). However, to face problems such as limited resources, different risk perceptions, and stakeholder engagement, HEIs need to adjust the guidelines (Argadinata et al., 2023). A standardized approach is required, but a customized risk framework is critical to mitigating risk as intended in an academic institution.

Application of the ISO 31000 Framework at the University of Canberra

ISO 31000:2018 RMF has been adopted and applied by the UC within its governance and operational structures to have a systematic process for identifying, assessing, and reducing risk. Audit and Risk Management Committee (ARMC) oversees risk management, compliance with legislative requirements, and institutional resilience (UC, 2025). University of Canberra (2018) concurs that implementing the RMF in UC corresponds to ISO 31000:2018, which combines risk assessment, control mechanisms, and governance structures for managing strategic, operational, and compliance risks. Nevertheless, challenges exist in implementing effective risk management due to fluctuating