ISO 31000:2018 (Risk Management)

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What is ISO 31000:2018?

ISO 31000 is a standard called "Risk management – Guidelines" that provides a set of principles, a framework, and a process for managing risk. It is designed to be applicable to any organization, regardless of its size, activity, or sector.

By following ISO 31000, organizations can increase their chances of achieving their objectives, as it helps in identifying opportunities and threats more effectively. It also assists in the proper allocation and utilization of resources for managing risks.

It is important to note that ISO 31000 is not meant for certification purposes. However, it does offer guidance for internal or external audit programs. Organizations that adopt ISO 31000 can compare their risk management practices with an internationally recognized benchmark. This allows them to ensure that their management and corporate governance align with sound principles for effective risk management.

ISO 31000:2018 - Principals

  • Integrated - Risk management is integrated into the organization's activities and decision-making processes across all departments. It is a responsibility of management to incorporate risk management into their tasks.
  • Structured and Comprehensive - Approaching risk management systematically improves efficiency and consistency within the organization and ensures everyone understands and follows guidelines for productivity and effectiveness.
  • Customized - Risk management processes must be customized to fit the organization's external and internal context in order to achieve objectives. Once the context is established in both the internal and external environments, objectives can be identified and risk management can be tailored to the specific needs of the organization.
  • Inclusive - Involving stakeholders ensures relevant and up-to-date risk management by considering their knowledge and views. It also promotes transparency and inclusion by using clear language that stakeholders can understand.
  • Dynamic - Context and knowledge in an organization are constantly changing and should be recognized. Risk management needs to adapt and respond to these changes promptly to maintain effectiveness and achieve desired outcomes. Risks arise, evolve, and vanish in response to internal and external events, so risk management should be proactive and prepared.
  • Best Available Information - An organization must act based on the best available data, even though it may not have all the necessary information. It should consider both historical and current information, along with their limitations. Stakeholders should have access to all known information.
  • Human and Cultural Factors - Risk management is impacted by human behavior and culture, and must acknowledge the organization's capabilities and the goals of individuals involved to either support or hinder the business objectives.
  • Continual Improvement - Continual improvement through experience ensures organizational resilience. The PDCA risk management process, consisting of planning, doing, checking, and adjusting, enables ongoing improvement as circumstances evolve. Adapting appropriately to results in risk management allows the organization to grow exponentially in all areas and continue doing so.

Qdot top professional consultants will provide guidance throughout the entire process of ISO 31000, starting from the initial steps to the final stage till ISO 31000 is done.

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