14 Facts About ISO 31000

ISO 31000 is a family of standards relating to risk management codified by the International Organization for Standardization.

ISO 31000:2018 provides principles and generic guidelines on managing risks faced by organizations.

ISO 31000 seeks to provide a universally recognized paradigm for practitioners and companies employing risk management processes to replace the myriad of existing standards, methodologies and paradigms that differed between industries, subject matters and regions.

ISO 31000 was published as a standard on 13 November 2009, and provides a standard on the implementation of risk management.

The ISO 31000 has been criticized for lack of solidness and misleading language.

ISO 31000:2018 provides a set of principles, guidelines for the design, implementation of a risk management framework and recommendations for the application of a risk management process.

The risk management process as described in ISO 31000 can be applied to any activity, including decision-making at all levels [2].

In other words, what ISO 31000 does is that it formalizes risk management practices, and this approach is intended to facilitate broader adoption by companies who require an enterprise risk management standard that accommodates multiple 'silo-centric' management systems.

Accordingly, ISO 31000 is intended for a broad stakeholder group including:.

One of the key paradigm shifts proposed in ISO 31000 is a controversial change in how risk is conceptualised and defined.

In order that ISO 31000 completes this controversial change, the historical origin and meaning of the word risk would cease to exist.

Intent of ISO 31000 is to be applied within existing management systems to formalize and improve risk management processes as opposed to wholesale substitution of legacy management practices.

Subsequently, when implementing ISO 31000, attention is to be given to integrating existing risk management processes in the new paradigm addressed in the standard.

ISO 31000 has not been developed with the intention for certification.