Risk is present in every aspect of our life, from mundane everyday activities such as choosing a route to work to complex corporate decisions such as opening a manufacturing plant in a different country. Much effort was put over the past decades into understanding better risk and its nature, which led to the creation of methodologies and approaches that enable individuals and organisations to make accurate decisions based on logical reasoning. One of the most distinguished frameworks to address risk is provided by ISO 31000, an international standard that incorporates principles, proven practices, and guidelines on managing risks organisations face.

What is ISO 31000?

ISO 31000 is an international standard that provides guidelines on managing any risk in any business activity. The standard provides guidelines on principles, risk management framework, and application of the risk management process.

ISO 31000 applies to organisations of all types and sizes that seek to integrate risk management into business functions. It covers the risk management principles which are the foundation for managing risk, and guides organisations in developing a risk management framework by:

• Integrating risk management into organisational structures
• Designing a framework for managing risk that fits the organisation’s context
• Implementing the risk management framework
• Evaluating the effectiveness and continually improving the suitability and adequacy of the risk management framework
• Demonstrating leadership and commitment (top management)

ISO 31000 considers the risk management process integral to overall management and decision-making. The risk management process can be applied strategically and organisation-wide, but it can also be applied to projects, products, and processes. ISO 31000 provides guidelines on risk communication and consultation, defining the scope, context, and criteria, risk assessment, risk treatment, monitoring and review, and recording and reporting risks.

Why is ISO 31000 important for organisations?

Organisations performing in any industry in any place are constantly exposed to risks. Managing these risks based on the principles, framework, and process outlined in ISO 31000 assures that organisations can succeed and thrive in an environment of constant change. Implementing ISO 31000 guidelines can improve operational efficiency by facilitating the integration of risk-based decision-making into an organisation’s governance, planning, management, reporting, policies, values, and culture.

ISO 31000 enables organisations to identify the potential risks that could hinder the achievement of business objectives. It will also help them to determine the significance of risks and decide which risks should be mitigated first to achieve the objectives before they affect the business and effectively keep all other risks under control. In addition, ISO 31000’s best practices allow organisations to develop a desired risk management culture.

A risk management approach based on guidelines of ISO 31000 indicates that organisations are committed to managing risks in every part of the business. It increases public confidence among customers and other stakeholders by demonstrating the organisations’ capabilities in mitigating internal and external threats. A risk management process based on ISO 31000 will enhance an organisation’s reputation and give it a competitive advantage.

Why should you pursue a certification in ISO 31000?

An ISO 31000 certification demonstrates that you have the necessary competencies to support an organisation in creating and protecting value. In addition, it shows that you can assist organisations in establishing a risk strategy, achieving strategic objectives, and making informed decisions. 

Certification in ISO 31000 helps you:

• Distinguish yourself from other risk management professionals
• Demonstrate awareness of risk management principles and other underlying concepts of risk
• Demonstrate the competencies to establish a risk management framework that is tailored to the needs and context of an organisation
• Show capability to apply the risk management process based on the recommendations of ISO 31000
• Show awareness of the importance of integrating risk management into significant activities and functions of an organisation 
• Have a more successful career in risk management

Why choose PECB and KRUCEK?

As a global training, examination, and certification service provider, PECB aims to help you demonstrate your commitment and competence by providing valuable education, evaluation, and certification against internationally recognised standards.

Our ISO 31000 Risk Manager and ISO 31000 Lead Risk Manager certificates are accredited by IAS. The IAS Accreditation Mark provides additional value to the certificate and allows you to capitalise on the worldwide recognition that IAS holds.

How do I get started?

We at PECB are excited to welcome you to our global network. We will assist you throughout the process to offer you a worthwhile experience.