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Home > By DEPARTMENTS > Management > Business Performance Management

Risk Management Guide from ISO 31000

There's no time like annual strategic planning sessions to bring up new trends that can threaten community, company and employees. That is sustainable, proactive, risk management.

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A new International Standard, ISO 31000:2009, Risk management—Principles and guidelines, will help organizations of all types and sizes to manage risk effectively. ISO 31000 provides principles, framework and a process for managing any form of risk in a transparent, systematic and credible manner within any scope or context.

ISO 31000 recommends that organizations develop, implement and continuously improve a risk management framework as an integral component of their management system.

Kevin W. Knight AM, Chair of the ISO Working Group on Risk Management, explains, "All organizations, 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.

"ISO 31000 is a practical document that seeks to assist organizations in developing their own approach to the management of risk," continues Mr. Knight. "But this is not a standard that organizations can seek certification to. By implementing ISO 31000, organizations can compare their risk management practices with an internationally recognized benchmark, providing sound principles for effective management."

ISO 31000

ISO 31000:2009 is not intended for the purpose of certification.

ISO 31000 is designed to help organizations:

  • improve the identification of opportunities and threats;
  • improve operational effectiveness and efficiency;
  • enhance health and safety performance, as well as environmental protection;
  • improve loss prevention and incident management
  • ...and more!
.

ISO 31000:2009 provides principles and generic guidelines on risk management. It can be used by any public, private or community enterprise, association, group or individual. Therefore, ISO 31000:2009 is not specific to any industry or sector.

ISO 31000:2009 can be applied throughout the life of an organization, and to a wide range of activities, including strategies and decisions, operations, processes, functions, projects, products, services and assets.

ISO 31000:2009 can be applied to any type of risk, whatever its nature, whether having positive or negative consequences.

Although ISO 31000:2009 provides generic guidelines, it is not intended to promote uniformity of risk management across organizations. The design and implementation of risk management plans and frameworks will need to take into account the varying needs of a specific organization, its particular objectives, context, structure, operations, processes, functions, projects, products, services, or assets and specific practices employed.

It is intended that ISO 31000:2009 be used to harmonize risk management processes in existing and future standards. It provides a common approach in support of standards dealing with specific risks and/or sectors, and does not replace those standards.



Edited by Carolyn Allen, owner/editor of California Green Solutions
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