ISO 31000 ... risk redefined

ISO 31000 ... defines risk as “the effect of uncertainty on objectives"

ISO 31000 will apply to all organisations worldwide, to all risks and in all sectors. It will become the  benchmark for good practice risk management, wherever an organisation operates and whether it is  the private or public sectors.

ISO 31000 is based on the AS/NZS 4360:2004 risk management process, but goes much further to define the principles against which organisations can evaluate their approach to risk management and use the standard to provide a road map for their future development.

Particularly for those companies and government bodies who wish to practice Enterprise Risk Management, the new standard sets out the practical approach to establishing and sustaining a capable framework for the management of all the risks they face.

With its new definition of risk as “the effect of uncertainty on objectives", ISO 31000 endorses the central, value-creating role that risk management plays. 

80-20 Options NZ Ltd is now working with organisations helping them develop or revise their approaches to risk management to align with the new standard. 

Principles for Managing Risk

• Creates value.

• Is an integral part of organizational processes.

• Part of decision making.

• Explicitly addresses uncertainty.

• Systematic, structured and timely.

• Based on the best available information.

• Tailored.

• Takes human and cultural factors into account.

• Transparent and inclusive.

• Dynamic, iterative and responsive to change.

• Facilitates continual improvement and enhancement of the organization.