ISO 31000 is an international standard that provides guidelines on managing any type of risk in any business activity. The standard provides guidelines on principles, risk management framework, and application of the risk management process.
ISO 31000 is applicable to organizations of all types and sizes who seek to integrate risk management into business functions. It covers the risk management principles which are the foundation for managing risk, and guides organizations in developing a risk management framework by:
ISO 31000 considers the risk management process as an integral part of overall management and decision-making. The risk management process can be applied on a strategic level and organization-wide, but it can also be applied on projects, products, and processes. ISO 31000 provides guidelines on risk communication and consultation, defining of the scope, context, and criteria, risk assessment, risk treatment, monitoring and review, and lastly, recording and reporting of risks.
Organizations performing in any industry in any place are constantly exposed to risks. Managing these risks based on the principles, framework, and process outlined in ISO 31000 provides a level of assurance that allows organizations to succeed and thrive in an environment of constant change. The implementation of ISO 31000 guidelines can improve operational efficiency by facilitating the integration of risk-based decision-making into governance, planning, management, reporting, policies, values, and culture of an organization.
ISO 31000 enables organizations to identify the potential risks that could hinder the achievement of business objectives. It will also help them to determine the significance of risks and decide which risks should be mitigated first in order to achieve the objectives before they affect the business, and effectively keep all other risks under control. In addition, ISO 31000’s best practices allow organizations to develop a desired risk management culture.
A risk management approach based on guidelines of ISO 31000 clearly indicates that organizations are committed to managing risks in every part of the business. It increases the public confidence among customers and other stakeholders as it demonstrates the organizations’ capabilities in mitigating internal and external threats. A risk management process based on ISO 31000 will enhance the reputation of an organization and give it a competitive advantage.
An ISO 31000 certification demonstrates that you have the necessary competencies to support an organization in creating and protecting value. In addition, it shows that you are able to assist organizations in establishing a risk strategy, achieving strategic objectives, and making informed decisions.
Certification in ISO 31000 helps you:
