Rounded Rectangle: ISO 31000 is designed to help organisations:
Increase the likelihood of achieving objectives
Encourage proactive management
Be aware of the need to identify and treat risk throughout the organization
Improve the identification of opportunities and threats
Improve financial reporting
Improve governance
Improve stakeholder confidence and trust
Establish a reliable basis for decision making and planning
Improve controls
Effectively allocate and use resources for risk treatment
Improve operational effectiveness and efficiency
Enhance health and safety performance
Improve organisational learning

 

R!sk Matters welcome the publication of ISO 31000 as it will help organisations of all types and sizes to manage risk effectively. It provides principles, framework and a process for managing any form of risk in a transparent, systematic and credible manner within any scope or context.

At the same time, ISO published ISO Guide 73:2009, Risk management vocabulary, which complements ISO 31000 by providing a collection of terms and definitions relating to the management of risk.

Kevin W. Knight AM, Chair of the ISO working group that developed the standard explains, “All organisations, no matter how big or small, face internal and external factors that create uncertainty on whether they will be able to achieve their objectives. The effect of this uncertainty is ‘risk’ and it is inherent in all activities. In fact, it can be argued that the global financial crisis resulted from the failure of boards and executive management to effectively manage risk. ISO 31000 is expected to help industry and commerce, public and private, to confidently emerge from the crisis.”

The standard recommends that organisations develop, implement and continuously improve a risk management framework as an integral component of their management system.

· “ISO 31000 is a practical document that seeks to assist organisations in developing their own approach to the management of risk. But this is not a standard that organizations can seek certification to. By implementing ISO 31000, organisations can compare their risk management practices with an internationally recognized benchmark, providing sound principles for effective management. ISO Guide 73 will further ensure that all organisations are on the same page when talking about risk,” said Mr. Knight.

ISO 31000:2009

Risk management principles and guidelines

ISO 31000:2009 Risk management process

© R!sk Matters Ltd  2011

because risk matters

Rounded Rectangle:

r!sk matters