ISO 31000: Risk Management – Guidelines

Key Objectives:

• Improve risk awareness and decision-making

• Integrate risk into strategy and operations

• Enhance resilience and organizational performance

🧱 1. Principles of Risk Management (8 Core Principles):

These guide how risk management should be structured and implemented:

1. Integrated – Embedded in all activities and decision-making

2. Structured and comprehensive – Ensures consistent and comparable results

3. Customized – Tailored to the organization’s context and objectives

4. Inclusive – Involves stakeholders to get diverse views

5. Dynamic – Responds to change and emerging risks

6. Best available information – Uses timely, accurate, and relevant data

7. Human and cultural factors – Considers human behavior and culture

8. Continual improvement – Learning from past outcomes and feedback

🏗️ 2. Framework for Risk Management:

The framework helps embed risk management into the organization:

• Leadership & commitment

• Integration into governance & culture

• Design of the framework

• Implementation

• Evaluation & improvement

🔄 3. Risk Management Process:

This is the step-by-step method for managing risk:

1. Establish the context – Understand internal/external environment

2. Risk identification – Recognize what could go wrong

3. Risk analysis – Assess likelihood and impact

4. Risk evaluation – Prioritize based on risk levels

5. Risk treatment – Decide how to respond (accept, reduce, transfer, avoid)

6. Monitoring & review – Track risks and responses over time

7. Communication & consultation – Keep stakeholders informed

📎 Example Use Cases:

• Business continuity planning

• Cybersecurity risk frameworks

• Strategic project planning

• Supply chain risk assessments