Your guide to ISO 31000

A collection of helpful guides to help you improve your understanding of specific standards and their impacts on your business.

What is ISO 31000?

ISO 31000 is an international standard for risk management. It provides framework and principles for risk management, and can be applied across different management systems and organisational functions. ISO 31000 is not a certification standard, which means that organisations cannot be certified as ISO 31000 compliant, however it does provide a convenient framework for organisations to ensure that they are managing risk in an effective way.

What are the aims of ISO 31000?

ISO 31000 is designed to be used in conjunction with other ISO management system standards, such as ISO 9001 for quality management and ISO 14001 for environmental management or ISO 27001 for information security.

This ISO standard seeks to help organisations:

Take an analytical approach to risk management.
Set principles to systematically and effectively manage risks in a structured and consistent manner.
Proactively identify, evaluate, and treat risks,
Achieve their objectives more effectively and efficiently, while adapting to external and internal factors that could impact their success.
To anticipate and adapt to changing circumstances and opportunities.

It defines techniques, and processes necessary for an organisation to manage risks effectively. These include:

Identifying risks
Applying appropriate controls
Monitoring the effectiveness of controls

How being ISO 31000 compliant will help your organisation?

Can help your organisation in several ways, including:

Improved risk management

By adopting this standard, your organisation will have a systematic and structured approach to risk management, which will help you understand the importance of managing risks in your organisation.

Better decision-making

A strong risk management framework enables your organisation to make risk-based decisions and informs your leadership team about the business context. By being able to rely on a well-thought out and structured risk assessment, you empower your people and protect your organisation’s future.

Increase stakeholders confidence

Can help increase stakeholder confidence in your organisation’s ability to manage risks effectively. This can be particularly important for investors, customers, and regulators who may be more likely to do business with or invest in organisations that can demonstrate effective risk management.

Improved operational efficiency

By managing risks proactively, your organisation can avoid or minimise disruptions to its operations. This can help reduce costs, increase productivity, and improve overall performance.

Enhanced reputation

Effective risk management can help your organisation build a reputation for being a responsible and reliable business partner. This can help attract and retain customers, employees, and investors, and increase your organisation’s standing in the market.

Scope and application

The scope covers the entire risk management process, from risk assessment to risk treatment.

The standard applies to all types of risks, including financial, operational, strategic, and reputational risks. It is suitable for organisations of all sizes and industries, including public and private sector organisations, as well as non-profit organisations.

Terms and definitions

This standard provides a number of key terms and definitions to ensure a common understanding of risk management concepts. Some of the key terms include:

Risk: the effect of uncertainty on objectives

Risk management: a systematic process of using policies, procedures, and practices to manage risk

Risk assessment: the process of evaluating risk and its likelihood of occurrence

Risk treatment: the process of selecting and implementing measures to modify risk

Risk management plan: a document that outlines the risk management process and the steps to be taken to manage risks

Risk tolerance: the level of risk that an organisation is willing to accept

Risk appetite: the level of risk that an organisation is willing and able to accept in pursuit of its objectives

Likelihood: probability of something happening

How can Inverifi help you get ISO 31000 compliant?

Risk management tools

Risk management tool that enables you to identify, assess, and treat risks in a systematic and structured way. This tool includes risk assessments, risk registers, risk treatment plans, and risk reporting features, all of which can help your organisation to meet the requirements of ISO 31000.

Centralised document management

Inverifi provides a centralised platform for managing all your documentation, including policies, procedures, and reports. This can help you to maintain an audit trail and ensure that all documentation is up to date and easily accessible.

Reporting

Inverifi provides a reporting feature that enables you to track and monitor your organisation’s risk management performance. Visual reporting of risk quantity as well as see a breakdown of the likelihood, severity and impact scores.