ISO 31000:2018 Risk Management – Guidelines
Although not truly a standard, ISO 31000 provides guidelines on risk management analysis within an organization. The application of these guidelines can be customized to any organization and its context. It is a guidance document that provides a common approach to managing any type of risk and is not industry or sector specific. It can be used throughout the life of the organization and can be applied to any activity, including decision-making at all levels.
ISO 31000 is a key tool for use by people who create and protect value in organizations by managing risks, making decisions, setting and achieving objectives, and improving performance.
Organizations of all types and sizes face external and internal factors and influences that make it uncertain whether they will achieve their objectives. Managing risk is iterative and assists organizations in setting strategy, achieving objectives and making informed decisions.
Managing risk is part of governance and leadership; particularly fundamental as an input for how the organization is managed at all levels. It contributes to the improvement of management systems, and is part of all activities associated with an organization, including everyone associated with the organization; from employees to customers to even those outside of the organization that can be affected by its actions, whether physical or financial.
In these days of dealing with pandemic issues, trade deals, regulations, tariffs, and other business speed bumps, knowing what to expect and how to handle whatever storm comes your way can be the difference between red and black ink.
In order to properly get a handle on risk management, considerations must be given to the external and internal context of the organization, including human behavior and cultural factors so that managing risk is efficient, effective and consistent.
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