ISO 31000 is a customizable risk management standard developed to guide organizations in making informed decisions regarding the creation and protection of value. This framework can be used by any organization, no matter the size or industry, but ISO 31000 cannot be used for certification reasons.
ISO 31000 is a system that provides concepts and a framework to can be implemented by any organization, into every process. It focuses on the identification of risks and opportunities, and how to distribute resources to treat threats. The incorporation of the eight principles of ISO 31000 into the risk management framework produces consistent results. The principles of this system are sturdy and are able to withstand comparison to an internationally recognized risk management audit.
The process of ISO 31000 risk management is an all-inclusive framework with high-quality standards. A solid framework is a cornerstone for a stable, long-term risk management process. The framework of ISO 31000 can be easily applied to all sectors of an organization because of the comprehensible terminology used. ISO 31000 is perfect for long-term use; its cyclical nature drives continuous improvement. Tailored information for every organization assures that this standard can be used internationally.
The ISO 31000 standard can help any entity take actionable steps to set up and maintain a reliable system for managing risk and decision making. The actual process of this includes the use of policies, monitoring and recording progress, and continually analyzing performance and improving it. The process that is established will pertain to the organization’s culture, capabilities, industry trends, and the expectations of stakeholders. The process cannot be established properly without the commitment of corporate management. Management commitment looks like this: developing a formal policy, identifying and allocating needed resources, and creating a cycle to review and maintain the process.
Although ISO 31000 cannot be used for certification, the systemized risk management standard can be used internationally by any organization or business. This standard for risk management can provide guidance for inspections by an independent body, while taking into account unique internal and external factors. Regardless of size or niche, ISO 31000 provides committed organizations with high-quality risk management with the goal to create and protect the value and continually achieve objectives. Any business implementing this standard obtains clear and reassuring guidance despite the uncertainty of the world.