What is ISO 31000?
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.
ISO 31000: Standards History and Updates:
The first ISO 31000 standard was published on November 13, 2009. Its
purpose at that time was to provide principles and generic guidelines on
Risk Management, seeking to provide a common approach to Risk Management
processes in support of standards dealing with specific risks (without
replacing those standards). However, the 2009 version of ISO 31000 did not
intend to promote uniformity of Risk Management across organizations.
The updated version of ISO 31000 was released on February 2018, replacing
the ISO 31000:2009.
The revised standard delivers a clearer, shorter, and more concise guide
that will help organizations make better decisions. It emphasizes the
integration of Risk Management within the organization, and the role and
responsibility of leadership. ISO 31000:2018 uses a simpler language, thus
making it accessible to all stakeholders.
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.
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.
What is ISO 31000 Certification?
This training course enables individuals to comprehend fundamental concepts
about Risk Management and understand the importance and benefits that can
be obtained by this standard. Those who should attend are individuals who
are interested in understanding the processes and strategies of Risk
Management.
Being ISO 31000 certified means that you are protecting your organization
from potential risks that could endanger the operational efficiency,
governance, and stakeholders’ confidence. The ISO 31000 training course
will provide support and allow you to identify opportunities, threats and
risks. It will help strengthen and achieve the strategic objectives of your
organization by establishing a risk-based system of values.
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