ISO 31000 is an international standard for Risk Management that provides a set of principles, a Risk Management framework and process, which help organizations take a proactive approach to risks that they face.
ISO 31000 helps organizations to develop, implement and continuously improve a framework that aims to integrate Risk Management strategies into the overall organizational processes including decision-making. The Risk Management process involves following five steps that identify circumstances, detect risk-associated hazards, assess and determine the risk, control evaluated risks and review the impact of the risks. This international standard is important if you are interested in providing yourself with comprehensive guidelines that will help your organization strengthen its indecision-making process and overall management. ISO 31000 is intended to simplify the task of governing complex situations that require crucial decisions to be made towards a structured approach of identifying and judging risks.
Definition of Risk
ISO 31000:2018 defines risk as the “effect of uncertainty on objectives”. It focuses on any deviation (positive, negative, or both) from the expected outcomes which can create or result in opportunities and threats. At the same time Risk Management is defined as ‘’coordinated activities to direct and control organization with regard to risk’’.
On a wider spectrum, the definition of Risk Management is to establish a coordinated and economical application of resources that reduce, monitor and regulate the probability and impact of unfortunate events. Managing risk is crucial for organizations – it helps to establish necessary steps so to remain resilient and develop a plan of action and strategies which can eliminate or reduce the impacts of risks.
Benefits of ISO 31000 Risk Management
The implementation of ISO 31000 improves operational efficiency, governance, and stakeholder confidence in your organization, while minimizing losses and enhancing risk analysis and risk assessment capacities. It helps integrate a risk-based decision-making in the culture of your organization.
Moreover, the integration of the ISO 31000 framework within an organization ensures the consistency and the effectiveness of management across all its areas such as IT, HR, compliance, quality, health and safety, business continuity, etc.
It is important to mention that the ISO 31000 guidelines are applicable to any activity of an organization, and can be customized by any organization and its context.
PECB Certified ISO 31000 individuals involved in risk management process of an organization will enable the organization to:
Gain competitive advantage – enhanced risk management will support achieving goals and objectives
Reduce costs through proper risk management
Respond to change effectively and find viable solutions
Create and protect value
Increase the likelihood of achieving objectives
Productively identify the opportunities and threats
Identify and mitigate the risk throughout the organization
Gain stakeholder confidence and trust
Create a consistent basis for decision making and planning
Why ISO 31000 Risk Management is important for you?
ISO 31000 will guide you toward identifying potential risks that could endanger the achievement of crucial objectives; it will help you to determine which risks are essential to take in order to achieve primary objectives before they affect the business, while effectively keeping all other risks under control.
Furthermore, becoming ISO 31000 certified proves that you have undergone the proper professional training; further advancing your risk management and risk identification skills. Nonetheless, helping you to formulate and correctly implement strategies and solutions to improve and protect the needs of the organization. Attending our training courses will be beneficial for you because it makes you more marketable to employers, as nowadays professional certifications are crucial.
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