ISO 31000 Risk Management - Guidelines

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Introduction to Risk management

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The long-term success of an organization relies on many things, from continually assessing and updating their offering to optimizing their processes. As if this were not enough of a challenge, they also need to account for the unexpected in managing risk.

 

Risks affecting organizations can have consequences in terms of economic performance and professional reputation, as well as environmental, safety and societal outcomes.

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Therefore, managing risk effectively helps organizations to perform well in an environment full of uncertainty.
 

What is ISO 31000?

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ISO 31000 is an international standard for Risk Management that provides the following:

• Set of principles

• Risk Management framework and process

• Helps organizations take a proactive approach to risks that they face.

 

ISO 31000 helps organizations to develop, implement and continuously improve a framework that aims to integrate Risk Management strategies into the overall organizational processes including decision-making. 

 

The Risk Management process involves following five steps:

1. Identify circumstances

2. Detect risk-associated hazards

3. Assess and determine the risk

4. Control evaluated risks

5. Review the impact of risks.

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In addition to addressing operational continuity, ISO 31000 provides a level of reassurance in terms of economic resilience, professional reputation and environmental and safety outcomes. In a world of uncertainty, ISO 31000 is tailor-made for any organization seeking clear guidance on risk management.

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This international standard is important if you are interested in providing yourself with comprehensive guidelines that will help your organization strengthen its indecision-making process and overall management. 

 

ISO 31000 is intended to simplify the task of governing complex situations that require crucial decisions to be made towards a structured approach of identifying and judging risks.

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The current iteration of the Standard:

• Was published on November 13, 2018

• Forms the first part of the ISO 31000 family of standards

• Replaced the ISO 31000:2009 version.

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The revised standard :

• Delivers a clearer, shorter, and more concise guide that will help organizations make better decisions

• Emphasizes the integration of Risk Management within the organization, and the role and responsibility of leadership

• Uses a simpler language, thus making it accessible to all stakeholders.

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The ISO 31000 principles and practices can be applied on a wide range of organisational activities, such as:

• Strategic planning and decision-making

• Business processes

• Business functions (such as Operations and IT)

• Projects

• Products, services and assets.

 

The European Committee for Standardization (CEN) has identified about 60 standards referring to risk management. Some of these standards have been aligned and others are being aligned with ISO 31000.

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​Along with Annex SL, ISO 31000 is being referenced in ISO standards such as 9001, 14001, 22301, 27001 and 55001 .

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Using ISO 31000 can help organizations increase the likelihood of achieving objectives, improve the identification of opportunities and threats and effectively allocate and use resources for risk treatment.

 

Definition of Risk

 

ISO 31000:2018 defines risk as the “effect of uncertainty on objectives”.

• Focuses on any deviation (positive, negative, or both) from the expected outcomes which can create or result in opportunities and threats.

 

At the same time Risk Management is defined as ‘’coordinated activities to direct and control organization with regard to risk’’. 

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On a wider spectrum, the definition of Risk Management is to establish a coordinated and economical application of resources that reduce, monitor and regulate the probability and impact of unfortunate events.

 

Managing risk is crucial for organizations:

• It helps establish the necessary steps to remain resilient and develop a plan of action and strategies which can eliminate or reduce the impacts of risks

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Why ISO 31000 Risk Management is important for you?

 

Because ISO 31000 will:

• Guide you toward identifying potential risks that could endanger the achievement of business objectives

• Help you determine which risks are essential to take in order to achieve primary objectives before they affect the business, while effectively keeping all other risks under control.

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Furthermore, becoming ISO 31000 certified Risk Management Practitioner:

• Proves that you have undergone formal  training and further enhanced your risk identification and management skills.

• Helps you to correctly formulate and implement strategies and solutions to improve and protect the needs of the organization.

 

Attending our training courses will be beneficial for you because it makes you more "marketable" to prospective employers, as nowadays professional certifications are crucial.

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For a snapshot of ISO 31000 benefits, industry sectors where the standard can be applied, and relevant statistics please click here.

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Other ISO Management System Standards (MSS) Associated with Risk Management

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ISO Guide 73:2009, Risk management Vocabulary complements ISO 31000 by providing a collection of terms and definitions relating to the management of risk. It aims to encourage a mutual and consistent understanding of, and a coherent approach to, the description of activities relating to the management of risk, and the use of uniform risk management terminology in processes and frameworks dealing with the management of risk.

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IEC 31010:2019, Risk management - Risk assessment techniques focuses on risk assessment concepts, processes and the selection of risk assessment techniques. The standard provides guidance on the selection and application of techniques for assessing risk in a wide range of situations. The techniques are used to assist in making decisions where there is uncertainty, to provide information about particular risks and as part of a process for managing risk.

 

Risk assessment helps decision makers understand the risks that could affect the achievement of objectives as well as the adequacy of the controls already in place.  

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Certification to ISO 31000

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​​ISO 31000 cannot be used for Risk Management System certification purposes, but does provide guidance for internal or external audit programmes.

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Organizations using it can compare their risk management practices with an internationally recognised benchmark, providing sound principles for effective management and corporate governance.

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Our certification scheme is designed for training and certification of individual Risk Practitioners at different levels of knowledge and competency.

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Our training courses enable individuals to:

• Comprehend fundamental concepts about Risk Management

• Understand the importance and benefits that can be obtained by following the guidance of this standard.

 

Those who should attend our courses are individuals who are interested in understanding the processes and strategies of Risk Management.

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Being ISO 31000 certified means that you, the Risk Practitioner:

• Have acquired the knowledge and skills to identify risks in the form of threats and opportunities

• Are protecting your organization from potential risks that could endanger its operational efficiency, governance, and stakeholders’ confidence

• Can help your organization achieve its strategic business objectives by establishing a risk-based system of values.

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Our Training Courses

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The FabAcademy provides ISO 31000 training at four levels:

• Introduction             1 day

• Foundation              2 days

• Risk Manager          3 days

• Lead Risk Manager 5 days

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For course details please follow the above links.

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Prerequisites

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The following are general prerequisites for attending our training courses:

• Proficiency in the English language

• Consideration for other course participants

• Willingness to actively participate during the training sessions, and an open mind to learn.

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Training Delivery Options

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Although, primarily, we deliver training to corporate clients, we also train small-size (min. 3 delegates) groups of individual learners, who are interested in updating, or upgrading their knowledge and skills, and advancing in their careers. This training is delivered online (virtual classroom) and is instructor-led.

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We do deliver on-site, close group training, as well as online instructor-led training, for corporate/ business clients (B2B).

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Book now to reserve, as applicable, an on-site or online instructor-led training event of your choice.

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For more details about our:

• List of training courses please click here.

• Consulting services please click here

• Workshops please click here.

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For queries, including non-obligation quotes, please contact us.