An Overview of ISO 31000 Guidelines – Risk Management

  Risk Management

ISO 31000 is a family of standards relating to risk management codified by the International Organization for Standardization. The purpose of ISO 31000:2018 is to provide principles and generic guidelines on risk management. Using ISO 31000 can help organizations increase the likelihood of achieving objectives, improve the identification of opportunities and threats and effectively allocate and use resources for risk treatment. ISO 31000 seeks to provide a universally recognised paradigm for practitioners and companies employing risk management processes to replace the myriad of existing standards, methodologies and paradigms that differed between industries, subject matters and regions.

Risks affecting organizations can have consequences in terms of economic performance and professional reputation, as well as environmental, safety and societal outcomes. Therefore, managing risk effectively helps organizations to perform well in an environment full of uncertainty. Damage to reputation or brand, cyber crime, political risk and terrorism are some of the risks that private and public organizations of all types and sizes around the world must face with increasing frequency. The latest version of ISO 31000 has just been unveiled to help manage the uncertainty.

Main changes since the previous edition in ISO 31000:

ISO 31000:2018 provides guidelines on managing risk faced by organizations. The application of these guidelines can be customized to any organization and its context. ISO 31000:2018 provides a common approach to managing any type of risk and is not industry or sector specific.

ISO 31000:2018 can be used throughout the life of the organization and can be applied to any activity, including decision-making at all levels.

What is ISO 31000 Framework?

The ISO 31000 Framework mirrors the plan, do, check, act (PDCA) cycle, which is common to all management system designs. The standard states, however, that, “This Framework is not intended to prescribe a management system, but rather to assist the organization to integrate risk management into its overall management system”. This statement should encourage organizations to be flexible in incorporating elements of the framework as needed.

ISO 31000 Process

After establishing the risk management Framework, an organization is ready to develop the Process. The Process, as defined by ISO 31000, is “multi-step and iterative; designed to identify and analyze risks in the organizational context.”

  • Active Communication
    • Communication and consultation with all stakeholders
  • Process Execution
    • Establishing the context
    • Risk identification
    • Risk analysis
    • Risk evaluation
    • Risk treatment
  • Oversight
    • Similar to the Framework, regular monitoring and review is required
Summary
An Overview of ISO 31000 Guidelines and Avalution – Risk Management
Article Name
An Overview of ISO 31000 Guidelines and Avalution – Risk Management
Description
ISO 31000 is a family of standards relating to risk management codified by the International Organization for Standardization. The purpose of ISO 31000:2018 is to provide principles and generic guidelines on risk management. Using ISO 31000 can help organizations increase the likelihood of achieving objectives, improve the identification of opportunities and threats and effectively allocate and use resources for risk treatment.
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Plianced Inc.
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