What Is ISO 31000?
ISO 31000:2018 is a single standard within the more prominent risk management standards known as ISO 31000. ISO 31000 risk management standards are intended to be used broadly across various industries, niches and business types, to provide the best practice structure and guidance to all operations seeking to use risk management principles.
The ISO 31000 Family
SO 31000, like many other ISO standards, refers to a set of risk management standards.So far, the ISO 31000 family includes:
- ISO 31000:2018- Principles and guidelines on implementation
- ISO/IEC 31010:2009- Risk assessment techniques
- ISO Guide 73:2009-Risk management vocabulary
- ISO / IEC 31010 – Risk Management – Risk Assessment – Technical risk assessment.
Principles for ISO 31000 Risk Management
- Create value
- Integration of organisational processes
- Decision making
- Explain uncertainty
- Systematic, structured and efficient
- Based on the best available information
- Necessary and adaptive
- Human and cultural factors taken into account
- Transparency and participation
- Dynamic, iterative and responsive to change
- Facilitating and continuously improving the company
- Framework of reference
- Leadership and commitment
The ISO 31000 Framework is modelled after the plan, do check, act (PDCA) cycle, which is used in the design of all management systems. However, the standard states, 'This Framework is not intended to prescribe a management system, but rather to assist the organisation in integrating risk management into its overall management system.' This statement should encourage organisations to be adaptable in incorporating framework elements as needed.
The framework's major components are as follows:
- Policy and Governance: Provides the mandate and demonstrates the organisation's commitment
- Program Design: Design of the overall framework for handling risk on an ongoing basis
- Implementation: Putting the risk management structure and programme in place
- Monitoring and Review: Oversight of the structure and performance of the management system
- Continual Improvement: Enhancements to the overall management system's performance
Risk management process
The risk management process is the systematic implementation of policies, procedures and practices that identify, analyse and assess the situation through risk assessment.
- angible and intangible sources
- Opportunities, strengths and weaknesses (S.W.O.T)
- The internal and external context and its changes
- General threat indicators
- The organisation's assets and resources.
- Probability of possibilities and their consequences
- Magnitude of consequences
- Time-related factors
- Controls and effectiveness
Compare the analysis results to the risk criteria and make decisions such as doing nothing, addressing the risk, conducting additional analysis, maintaining existing controls, or reconsidering objectives.
This process should be documented, communicated and validated throughout the organisation.
The goal of risk mitigation is to select and implement risk-reduction strategies. Risk reduction entails a dynamic process of:
Formulating and selecting risk responses necessitates knowing how much it will cost, what implications and consequences it will have and who it will affect.
Benefits for the organisation
- Employees and customers can feel safe and confident
- Risk management is adequate
- Preventive culture
- Management system enhancements
- Allows for a better understanding of the significance of identifying, analysing, monitoring and dealing with risk at each stage
- Aids in the identification of threats, weaknesses, opportunities and strengths throughout the process
- Assists in meeting the legal requirements of international standards
- It develops a solid and dependable strategy centred on decision-making and planning.
Benefits ISO 31000 for stakeholders
- Stakeholders' security
- Efficacy in emergencies
- Actions to be taken in the event of a threat or risk
- Improved financial management of the company and economic stakeholders' trust.
- Credibility and prestige are important
- Trust and security
- Prevents potential losses that may occur.
What is the Relationship Between ASIS SPC.1-2009 & Business Continuity
The arrival of ISO 31000 and the ASIS SPC.1 Organizational Risk standard in such closeness to one another brought up a few issues. Since both are the restricted frameworks, the question is will the business see them as identical or exchangeable and how would they identify with business progression?
While the two benchmarks influence the administration framework's forms and portray a comparative procedure structure, SPC.1 presents to some degree increasingly restricted extension, characterising Organisational Resilience as far as security, readiness and progression.
At the same time, ISO 31000 keeps up a more extensive – maybe progressively crucial centre. Concerning the progression, it is only one of the many risks that would involve a progressively essential risk the executives' program embraced by ISO 31000. Therefore, business progression ought to be seen as a sub-segment of the risk as to the program portrayed in ISO 31000 on the grounds that it tends to one explicit risk (procedure, asset and innovation accessibility).