Safer business, or: How safe can you afford not to be?

ISO 31000 Standardizes Risk Management

The ISO 31000 risk management system standard offers a common framework and process to manage organizational opportunities as well as threats.

ISO 31000 is a complementary standard to ISO 9000, ISO 14000 and OHSAS 18000, (soon to become ISO 45001) by guiding the application of these related standards within a comprehensive risk management system.

Any organization’s risk management should be capable of review and evaluation by any risk manager or auditor. ISO 31000 sets a framework for ‘components that provide the foundation and organizational arrangement for designing, implementing, monitoring, reviewing and continually improving risk management processes’.

The framework of 31000 follows the Plan, Do, Check, Act model, like other global management system standards. The standard also provides practical guidelines on how to;

  • implement risk management
  • identify risks
  • manage risks
  • improve organizational performance
  • maximize opportunities and minimise losses
  • maintain raise awareness of opportunities and risks

Risk Management Approach

Corporate governance is the way an organization is controlled to achieve its objectives. Control offers reliability within a tolerable degree of certainty. It is the ‘glue’ that holds an organization together, while risk management provides resilience.

A risk management system depends on management commitment and allocation of resources during design, implementation, maintenance and monitoring the process at all levels.

Resources include assignment of competent people, accurate forecasting and spending, quality material, adequate and sufficient equipment, appropriate and efficient methods, marketing the management system inside and outside the organization.

Management must set the tone for honest communication and reporting at all levels, to ensure reliable data, information, appropriate decisions, accountability and responsibility.

We’d like to support you in managing your long term risk requirements.

There is no opportunity in life or business that does not come with risk – the question, therefore, is how much risk are you willing to bear? How can you predict and describe the transformation of your organization’s complex risk habitat? What strategies can you use to steer your company towards sustainable development? What institutional and organizational preconditions need to be in place for effective implementation of these strategies?

Risk is the effect of uncertainty on the achievement of objectives, and Risk Management is for those who want to understand the uncertainty involved in achieving their objectives and who want to manage their risks so as to ensure a successful outcome.

If Risk is defined as the “probability or threat of a damage, injury, liability, loss, or other negative occurrence that may be neutralized through pre-mediated action,” then Risk Management according to ISO 31000 is exactly that pre-mediated action that reduces risk to an acceptable minimum. It regulates the requirements of the risk management process and introduces the methodology of risk analysis. It also facilitates the application of many sector-specific standards, especially in the financial sector but also for IT, medical devices, or the automotive industry.

Risk Management covers risks both operational and strategic in nature, with a special focus on their interaction and development over time.

Risk Management is a tool for companies of any business sector that would like to use their management system to identify and analyze risks at an early stage, in order to make them controllable. The implementation of Risk Management increases both the awareness of risk and of opportunity, and their pro-active approach helps to ensure positive business development in the future. Thus the management of risk is woven into the organizational fabric and culture across the organization.

Benefits for your organization:

  • Supplies facts for the evaluation of performance and results,
  • Manages opportunities as well as risks Increase the likelihood of achieving objectives
  • Develop a risk management strategy and contingency plans
  • One integrated system to identify, analyze and evaluate risks
  • Strategic early warning system
  • Minimize the uncertainty of outcomes
  • Ensures the availability of resources, financial and otherwise

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