ISO 31000 RISK MANAGEMENT SYSTEM
In ISO terminology, risk is defined as the effect of uncertainties on the goals of the organization. These effects; It is expressed as a deviation from the expected in the form of negative and / or positive, opportunities and threats. Risk is generally formulated in terms of sources of risk, potential events, their consequences and probabilities. Risk management, on the other hand, means organized activities for controlling and directing risks.
ISO 31000 helps organizations develop risk management strategies to increase the likelihood of achieving objectives and provide greater protection of assets through identifying risks and taking measures; It aims to raise the level of awareness of stakeholders about the management and monitoring of risks. Applying this standard also provides the opportunity to make more informed and more effective decisions about the use of resources by seeing the negative and positive consequences attached to the risks together. As a result, improving the corporate governance of organizations also increases performance.
In order to provide guidance to all organizations without the need for a certificate on risk management, the ISO 31000: 2009 risk management standard was first issued in 2009, and this standard was left to the ISO 31000: 2018 standard at the beginning of 2018.
ISO 31000: 2018 has been prepared in accordance with those who create and protect value by defining and achieving goals, making decisions, managing risks and improving performance in organizations. All organizations are faced with internal and external factors that create uncertainty in achieving the goals. Risk management is a constantly iterative process and is a part of corporate governance, leadership and all activities in organizations and contributes to the improvement of management systems.
ISO 31000: 2018 consists of three main parts: principles, framework and process. The principles have been determined as integration, comprehensive and structured, adapted to the organization, inclusive, dynamic, best available knowledge, human and cultural factors and continuous improvement, with a focus on creating and preserving value in the organization, in order to dominate the framework processes. Under the heading of framework, leadership and commitment, the concepts of integration, design, implementation, measurement and improvement; The process consists of risk assessment, monitoring and review, and communication and consultation stages.
ISO 31000 can be applied to all organizations regardless of location, size and activities.
What are the Benefits of the ISO 31000 Standard?
- Proactively improves operational efficiency and management
- Builds shareholder confidence in your risk management
- Applies management system controls for risk analysis to minimize losses
- Increases the performance and resistance of the management system
- Protects your company as you grow by responding effectively to change