What is ISO 31000:2018
Risk Management System?
ISO 31000 is an international standard intended to serve as a guide for the
design, implementation and maintenance of risk management. All types and sizes of organizations face internal and external
factors and influences that make it uncertain whether and when they will
achieve their objectives. The effect this uncertainty has on an organization’s
objectives is risk.
Risk is involved in any activity of an
organization. ISO 31000:2009 describes a systematic and logical process, during
which organizations manage risk by identifying it, analyzing and then
evaluating whether the risk should be modified by risk treatment in order to
satisfy their risk criteria.
31000 cannot be used for certification purposes, but does provide guidance for
internal or external audit programmes. Organizations using it can compare their
risk management practices with an internationally recognised benchmark,
providing sound principles for effective management and corporate governance.
Why ISO 31000 is important?
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
ISO 31000, Risk management Guidelines,
provides principles, framework and a process for managing risk. It can be used
by any organization regardless of its size, activity or sector. 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.
What are the benefits of ISO 31000?
Giving you a competitive advantage
Increasing employee awareness of organizational risks
Reduce the frequency of, and ultimately eliminate risks
Improve trust of stakeholders
Foster forward-thinking mentalities
Improve company culture
Improve success rate
Who can implement ISO 31000?
It is not specific to any industry or sector, so it can be
used by any public, private or community enterprise, association, group or
individual. This standard can be applied throughout the life of an
organization, and to a wide range of activities, including strategies and
decisions, operations, processes, functions, projects, products, services and
management can be applied to an entire organization, at its many areas and
levels, at any time, as well as to specific functions, projects and activities.