ISO 31000

ISO 31000 is an international standard for risk management published by the International Organization for Standardization (ISO). It provides principles and generic guidelines on risk management. The standard can be used by any public, private or community enterprise, association, group or individual.

ISO 31000 is not specific to any industry or sector and can be applied to a wide range of activities, including strategy and planning, operations, management processes, reporting, projects, products, services, and assets. It promotes a proactive approach to managing risk, enabling organizations to identify opportunities and threats, and make informed decisions.

The core components of the ISO 31000 framework include:

• Principles: These provide the foundation for effective risk management. The principles emphasize that risk management should be integrated into all organizational activities, be structured and comprehensive, be customized, inclusive, dynamic, iterative, responsive to change, and based on the best available information.
• Framework: This establishes the organizational arrangements for integrating risk management into the overall governance and management. It outlines key elements such as leadership and commitment, integration, design, implementation, evaluation, and improvement.
• Process: This describes the systematic application of management policies, procedures and practices to the activities of communicating and consulting, establishing the context, assessing risks, treating risks, monitoring and reviewing, recording and reporting.

The standard emphasizes the importance of understanding the context of an organization and its stakeholders, and of involving them in the risk management process. It promotes the use of risk assessment techniques to identify, analyze, and evaluate risks. Risk treatment options include avoiding, accepting, transferring, mitigating, and exploiting risks. The standard emphasizes the continuous monitoring and review of risks and the effectiveness of risk management activities.

ISO 31000 is not a certifiable standard. Organizations cannot obtain a certification of compliance with ISO 31000. However, organizations can use ISO 31000 as guidance for developing and implementing their own risk management framework.

Key related standards and documents include:

• ISO Guide 73: Provides vocabulary related to risk management.
• ISO 31010: Provides risk assessment techniques.