ISO 31000:2018 Risk Management

What is ISO 31000:2018 Risk Management?

ISO 31000:2018 is a generic risk management standard. It was developed by ISO Technical Committee 262, Risk Management. The official name of the standard is ISO 31000:2018 Risk Management Guidelines.

It was published in February 2018 and is the second ISO standard edition. It cancels and replaces the ISO 31000:2009, which is now obsolete. In addition, it was updated to streamline the content and respond to changing stakeholders and expectations.

ISO 31000 is the International-level standard that specifies certain guidelines and practices for businesses to follow in their risk management system. It provides a comprehensive approach to managing risk in every business area, including financial loss, data breaches, intellectual property loss, safety risks, etc.

Removing uncertainties in business is essential to promote growth and efficiency. This international standard for risk management lays down detailed regulations and principles for businesses to manage and mitigate business risks, enhancing the value of their output.

What are the Benefits of ISO 31000?

  • Proactively improve operational efficiency and governance.

  • Build stakeholder confidence in your use of risk techniques.

  • Apply management system controls to risk analysis to maintain resilience.

  • Respond to change effectively and protect your business as you grow.

ISO 31000 standard gives a list of how to deal with risk:

  • Avoid risk by deciding not to start/continue with the activity that leads to risk.

  • Accepting or increasing the risk to pursue an opportunity.

  • Removing the risk source.

  • Changing the likelihood.

  • Changing the consequences.

  • Sharing the risk with another party or parties (including contracts and risk financing).

  • Retaining the risk by informed decision.

Why is ISO 31000 Risk Management Important?

Understanding the risks and managing them appropriately will

  • Enhance your organization’s ability to make better decisions.

  • Safeguard your assets.

  • Enhance your ability to provide quality products and services.

  • Improve the likelihood of achieving your goals and objectives.

  • And customers can be confident they will receive the expected product or service.