The ISO 31000 is the international standard for risk management originally issued in 2009 by the ISO (International Organization for Standardization). It provides a detailed framework for the design, implementation, and maintenance of risk management on a company-wide level. It only aims to be used as a guide to help businesses compare their existing practices with international standards.
In this article we will discuss the following:
- What is an ISO 31000 risk management checklist
- What is the ISO 31000 definition of risk
- The changes made to the new ISO 31000 risk management standard
- Five components of the ISO 31000 risk management framework
- ISO 31000 risk management standard
- Risk management software to help strengthen risk management practices
- Free ISO 31000 risk management templates
What is an ISO 31000 Risk Management Checklist?
An ISO 31000 risk management checklist is a tool used to help organizations in identifying, assessing, and controlling threats to build a sound risk management system. It helps assess the framework for the design, implementation, and maintenance of risk management.
What is the ISO 31000 Definition of Risk?
ISO 31000 defines risk as to the effect of uncertainty on objectives. It means that every process has an element of risk that needs to be managed and every result is uncertain. It is defined in goal-oriented terms that provide a conceptual definition of risk.
What is in the Updated ISO 31000:2018?
In 2018, the ISO 31000 risk management standards were revised to allow companies more flexibility in implementing the principles in a way that suits their objectives and goals. Here are the four main updates to ISO 31000:2018:
- Review of the principles of risk management, which are the key criteria for its success
- Focus on leadership by top management who should ensure that risk management is integrated into all organizational activities, starting with the governance of the organization
- Greater emphasis on the iterative nature of risk management, drawing on new experiences, knowledge, and analysis for the revision of process elements, actions, and controls at each stage of the process
- Streamlining of the content with a greater focus on sustaining an open systems model that regularly exchanges feedback with its external environment to fit multiple needs and contexts.
Learn more about the ISO 31000:2018 risk management standards revisions in this PDF.
What are the Five Components of the ISO 31000 Risk Management Framework?
ISO risk management focuses on the best practice principles for implementing, maintaining, and improving a framework for risk management. It has five components including:
- Mandate;
- Plan;
- Implement;
- Check; and
- Improve.
These components help in providing a clear and universally applicable set of guidelines for risk management.
Adopting the new ISO 31000 Risk Management Standard
The latest ISO 31000:2018 Risk Management standard is depicted as a trinity of Principles, Framework, and Processes. These three components come together to ensure:
- Principles – Sustaining a dynamic and continuously improving risk management system that is customized, innovative, dynamic, structured, and inclusive;
- Framework – Senior management leads the proactive integration of risk management on all levels of the organization; and
- Processes – Systematic application of policies and practices that support open communication, consultation, and risk reporting
With ISO 31000:2018’s iterative process to risk management, there will be a need for an organization to continuously report, review, and consider the right action to treat risks. It would be near impossible to successfully implement and sustain the ISO 31000 risk management standard if an organization’s process is heavily dependent on paper-based communication and record keeping.
iAuditor as Digital Risk Management Tool
Implementing the right software and technology is a critical component of any effective risk management system. An effective risk management tool should be intuitive for users to capture data in a timely manner and powerful enough to capture and analyze quality data.
iAuditor by SafetyCulture is a powerful risk management tool that can transform your paper-based risk assessment into powerful mobile applications. Spend less time on paperwork and data-entry and more time identifying and fixing risks. You can get started by downloading from our free collection of customizable risk audit templates below.
Featured ISO Templates
ISO 31000 - Risk Management Template
This Risk Management Plan Template can help identify the risks and the impact on a project. Assess the likelihood, seriousness, and grade of the risk. Define mitigation strategies and assign tasks to correct individuals. iAuditor automatically records reports that can be easily accessed on one online platform for review. You can customize iAuditor templates, its response sets, and set the scoring to observe trends and see how risks are performing over time.
ISO 31000 - Risk Assessment Template
This risk assessment template allows the ability to add multiple risks found in one assessment. Identify hazard/s involved, select the severity, likelihood and risk rating. Choose the appropriate control measure from the hierarchy of controls and include comments plus photos as supporting evidence. You can conveniently share assessment results with a touch of a button on your mobile device.
ISO 31000 - Hazard Identification Template
Use this hazard identification checklist to assess risks such as noise, manual handling, excavation, etc., at the worksite. Photos can be used as evidence of hazards found. Assign urgent tasks to immediately resolve urgent risks. Enter comments and your providing the overall rating before completing the assessment. Analyze data via the iAuditor platform to consider risks present.
