What is ISO 31000 Risk Management?
In addition to addressing operational continuity, ISO 31000 provides a level of reassurance regarding economic resilience, professional reputation, and environmental and safety outcomes. In a world of uncertainty, ISO 31000 is tailor-made for any organization seeking clear risk management guidance.
To Whom Does ISO 31000 Apply?
ISO 31000, Risk Management – Guidelines, provides principles, a framework, and a process for managing risk. It can be used by any organization, regardless of size, activity, or sector.
Using ISO 31000 can help organizations increase the likelihood of achieving objectives, improve the identification of opportunities and threats, and effectively allocate and use risk treatment resources.
However, ISO 31000 cannot be used for certification purposes. Instead, it serves as guidance for internal or external audit programs. Organizations that use it can compare their risk management practices with an internationally recognized benchmark, providing sound principles for effective management and corporate governance.
What Are the Main Differences Between the ISO 31000 Standards?
ISO 31000:2018 provides more strategic guidance than ISO 31000:2009 and places greater emphasis on senior management's involvement and the integration of risk management into the organization. This includes recommendations to:
- Develop a statement or policy confirming a commitment to risk management.
- Assign authority, responsibility, and accountability at appropriate levels within the organization.
- Ensure necessary resources are allocated to manage risk effectively.
The revised standard also recommends that risk management be integrated into an organization’s structure, processes, objectives, strategy, and activities. It places a stronger focus on creating value as the key driver of risk management. It highlights other principles such as continual improvement, stakeholder inclusion, customization to the organization, and consideration of human and cultural factors.
How Do I Get Started?
- Be aware of your organization's key objectives – This will help you clarify the targets and requirements of your risk management system.
- Assess your current governance structure – Ensure that the appropriate roles, responsibilities, and reporting procedures are defined when it comes to risk.
Define your level of commitment – Determine what resources you can allocate to implementing or maintaining a risk management system.
