WHAT IS ISO 31000?
It is a PRACTICAL document that aims to help organizations in developing their own approach to RISK MANAGEMENT. But this is not a standard where organizations can apply for certification.
iso31000-risk-management-principles-guidelinesBy implementing ISO 31000, organizations can COMPARE their risk management practices against an INTERNATIONALLY recognized benchmark, providing sound principles for effective management.
RISK MANAGEMENT
It is a structured approach to managing uncertainty regarding a threat.
The Effect of Uncertainty on Goals
Strategies include transferring risk elsewhere, avoiding risk, reducing negative effects of risk, and accepting some or all of the consequences of a particular risk.
The risks can be various depending on the approaches you take into account, examples: Market risks, liquidity risks, credit risks, Natural disaster risks, Legal problems risks. Currently in Venezuela we have a…
“All organizations, no matter how big or small, face internal and external factors that create uncertainty on whether they will be able to achieve their objectives. The effect of this uncertainty is 'risk' and it is inherent in all activities. "
“In fact It can be argued that the global financial crisis resulted from the failure of boards and executive management to effectively manage risk. ISO 31000 is expected to help industry and commerce, public and private, to confidently emerge from the crisis. "
“ALL organizations, no matter how big or small, face internal and external factors that create uncertainty about whether they will be able to achieve their objectives. The effect of this uncertainty is RISK and is inherent in all activities. "
“In fact, it can be argued that the GLOBAL FINANCIAL CRISIS as a result of the lack of tables and executive management for EFFECTIVE RISK MANAGEMENT. ISO 31000 is expected to help industry and commerce, both public and private, to confidently emerge from the crisis "
Kevin W. Knight Chairman of the ISO 31000 working group
BRIEF BACKGROUND
WHAT TOWARD RISK MANAGEMENT ORGANIZATIONS before 2009?
The application of the AS / NZ 4360 standard guarantees the organization a solid basis for the application of any other specific risk management standard or methodology for a certain segment.
3 KEY ELEMENTS
- The principles of risk management The risk management framework The risk management process
STRUCTURE ISO 31000
PRINCIPLES FOR RISK MANAGEMENT
- Creates VALUE It is integrated into the processes of an organization It is part of DECISION MAKING It explicitly treats uncertainty It is systematic, structured and adequate It is based on the best available information It is tailored It takes into account HUMAN and cultural FACTORS It is TRANSPARENT AND INCLUSIVE It is dynamic, iterative and sensitive to change It facilitates continuous improvement of the organization.
BENEFITS
- Increase the likelihood of achieving objectives Encourage proactive management Be aware of the need to identify and address risks across the organization Improve the identification of opportunities and threats Comply with legal and regulatory requirements and international standards Improve financial reporting Improve governance Improve trust of stakeholders interest groups (stakeholder)
