What is BS ISO 31000 - Risk management guidelines about?
In a world of uncertainty, BS ISO 31000 is an international standard that is tailor-made for any organization seeking clear guidance on risk management. It provides principles, a framework and a process for managing risk.
It provides direction on how companies can integrate risk-based decision making into an organization’s governance, planning, management, reporting, policies, values and culture.
This standard is an open, principles-based system, meaning it enables organizations to apply the principles in the standard to the organizational context.
What are the benefits of BS ISO 31000 - Risk management guidelines?
By implementing the risk management principles and guidelines of BS ISO 31000 in your organization, your business can also benefit from:
- Proactively improve operational efficiency and governance
- Build stakeholder confidence in your use of risk techniques
- Apply management system controls to risk analysis to minimize losses
- Improve management system performance and resilience
- Respond to change effectively and protect your business as you grow
This international standard also helps you to boost health and safety performance, establish a strong foundation for decision making and encourage proactive management in all areas.
What’s more, it helps organizations see both the positive opportunities and negative consequences associated with risk, and allows for more informed, and thus more effective, decision making - namely in the allocation of resources.
Who is BS ISO 31000 - Risk management guidelines for?
Whether you work in a public, private or community enterprise, you can benefit from the BS ISO 31000 risk management standard because it applies to most business activities including planning, management operations and communication processes.
It was developed by a range of stakeholders and is intended for use by anyone who manages risks, not necessarily just professional risk managers. For example, it can be used by people who create and protect value in organizations by managing risks, making decisions, setting and achieving objectives, and improving performance.
These could include:
- Risk Management Professionals
- Risk Consultants
- Strategic Professionals
- Project Managers
- Organizational Leadership Teams
What does BS ISO 31000 - Risk management guidelines cover?
BS ISO 31000 explains the fundamental concepts and principles of risk management, while describing a framework and outlining processes for identifying and managing risk. Its overarching goal is to develop a risk management culture where employees and stakeholders are aware of the importance of monitoring and managing risk.
The process concepts in this document are also included in other key ISO standards, such as BS EN ISO 14001, BS EN ISO/IEC 27001, BS EN ISO 9001, and BS ISO 45001.
NOTE: BS ISO 31000 is a guidance standard that is sometimes mistaken for a management system standard because it provides a “framework” for risk management. However, it is not a management system and does not provide “requirements”.
Some other important risk management standards include:
- BS 31100 Risk management. Code of practice and guidance for the implementation of BS ISO 31000:2018
- BS ISO 31073 Risk management. Vocabulary
- BS ISO 31022 Risk management. Guidelines for the management of legal risk
- BS EN IEC 31010 Risk management. Risk assessment techniques
- BS ISO 31030 Travel risk management. Guidance for organizations
- BS EN ISO 22301 Security and resilience. Business continuity management systems. Requirements
What’s changed since the last update?
All ISO standards are reviewed every five years and then revised if needed. This helps ensure they remain relevant, useful tools for the marketplace.
In revising ISO 31000:2018, very few technical changes were needed. Instead, the focus was on providing greater clarity, making the document more succinct, and providing user-friendly language.
As a result, this version of ISO 31000 on risk management will enable the terms, concepts, and processes of risk management to be better understood, communicated, and applied. The revision also includes more emphasis on the importance of human and cultural factors in achieving an organization’s objectives and on embedding risk management within the decision-making process.
