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.
The ISO 31000 risk management standard can be adopted by organizations of any size and industry, but is not used for certification purposes. It only aims to be used as a guide to help businesses compare their practices with a benchmark risk management standard by the ISO.
This article features: 1) the changes made to the new ISO 31000 risk management standard; 2) 3 components of ISO 31000 risk management; and 3) risk management software to help strengthen risk management practices.
Click here to download ISO 31000 Risk Management Templates
What makes ISO 31000:2018 different than ISO 31000:2009?
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 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.
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 your 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 is the world’s #1 form building app which 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:
