What is ISO 31000 Risk Management?
In addition to addressing operational continuity, ISO 31000 provides a reassurance level 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 the 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 its 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 but does guide internal or external audit programs. Organizations using 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 standards within ISO 31000?
ISO 31000:2018 provides more strategic guidance than ISO 31000:2009 and places more emphasis on senior management's involvement and the integration of risk management into the organization. This includes the recommendation to develop a statement or policy that confirms a commitment to risk management, assigning authority, responsibility, and accountability at the appropriate levels within the organization, and ensuring that the necessary resources are allocated to managing risk. The revised standard now also recommends that risk management be part of its structure, processes, objectives, strategy, and activities. It places a greater focus on creating value as the key driver of risk management. It features other related principles such as continual improvement, the inclusion of stakeholders, customized 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 your risk management system's targets and requirements.
- Assess your current governance structure – this will ensure you allocate the right roles, responsibilities, and reporting procedures when it comes to risk.
- Define your level of commitment – what resources will you be able to allocate implementing or maintaining a risk management system.