ISO 31000 Risk Management System
It provides principles, a framework and a process for managing risk. It can be used by any organization regardless of its size, activity or sector.
By developing the Risk Management system to account for the unexpected in managing risk and continually assessing and updating their offering that will creates the possibilities for long-term success of an organization and optimizing their processes. ISO 31000 is an international standard that provides principles and guidelines for effective risk management. It outlines a generic approach to risk management, which can be applied to different types of risks (financial, safety, project risks) and used by any type of organization.
With 11 unique principles, ISO 31000 specifies a framework which the subsequent models of the standard can be based on. They clarify the importance of risk management and provide basic instructions for structuring a risk management system.
It shall help organizations increase the probability of achieving objectives, improve the identification of opportunities and threats and effectively allocate and use resources for risk treatment. It helps standardize the steps you take to evaluate and manage risk, leaving you with a formal and standardized workflow.
Benefits of ISO 31000 Certifications
- ISO 31000 is a systematic and logical process for managing risk and uses a methodology that focuses on the company vision, mission, and objectives
- Focus on goals: by following international best practices on risk assessment you are more likely to meet your goals.
- Lower costs: through intensive risk analysis you increase your chances of immediately taking good decisions, reducing a lot of unnecessary costs.
- Even if an organization already has a formal process for managing uncertainty ISO 31000 shall carry out a critical review of its existing practices and processes.
- Risk-aware culture: the standard makes sure well-informed decisions are being made on all levels. For example, when assigning resources.
- Stronger reputation: an organization that implements the guidelines from ISO 31000 shows the outside world it not only identifies risks but also analyses and controls them.
- Spotting opportunities: the revised ISO 31000 emphasizes that risks aren’t necessarily negative, but can also have a positive impact on your goals.
- Builds confidence in shareholders’ risk management
- Improves the performance and resistance of the management system
- Protects your company as you grow by responding effectively to change
- ISO 31000 clearly states that risk management is an open-ended process designed to be highly customized and tailored to the individual needs and contexts of the organization implementing it