ISO 31000 Risk Management
In ISO terminology, risk is defined as the effect of uncertainties on the objectives of the organization. These effects are; negative and / or positive are expressed as deviations expectations in the form of opportunities and threats. Risk is generally formulated in terms of sources of risk, potential events, their consequences and possibilities. Risk management, on the other hand, means organized activities for controlling and directing risks.
ISO 31000 helps organizations to develop risk management strategies to increase the likelihood of achievement of objectives and to further protect assets by identifying risks and taking measures; It aims to raise awareness of stakeholders on risk management and monitoring. Applying this standard also offers the opportunity to make more informed and effective decisions about using resources by seeing negative and positive results adhering to risks. As a result, improving the corporate governance of organizations also increases performance.
In order to provide guidance to all organizations without the need to obtain a certificate in risk management, the ISO 31000: 2009 risk management standard was first introduced in 2009 and this standard was left to the ISO 31000: 2018 standard at the beginning of 2018.
ISO 31000: 2018 has been prepared in accordance with people who create and maintain value by defining and achieving goals, making decisions, managing risks and improving performance. All organizations face internal and external factors that create uncertainty about achieving goals. Risk management is a continuously repeating process, it is a part of corporate management, leadership and all activities in organizations and contributes to the improvement of management systems.
ISO 31000: 2018 principles consist of three main sections: frame and process. The principles are determined as integration, comprehensive and structured, adapted, inclusive, dynamic, the best available information, human and cultural factors and continuous improvement, in order to dominate the framework processes, in the focus of creating and maintaining value in the organization. Under the title of framework, leadership and dedication, integration, design, implementation, measurement and improvement concepts; the process consists of stages of risk assessment, monitoring and review, and communication and consultation.
ISO 31000 can be applied to all organizations regardless of location, size and activities.
What are the Benefits of ISO 31000 Standard?
- Proactively improves operational efficiency and management
- Build trust in your risk management in shareholders
- Applies management system controls for risk analysis to minimize losses
- Increases the performance and resistance of the management system
- Protects your company as you grow by responding effectively to change
