Internationally Recognised Standard For Managing Risk (ISO 31000)

ISO 31000 is an internationally recognised standard for managing the risk that lays all the framework and policies related to it. ISO 31000 provides a universally recognised paradigm for practitioners as well as companies that employ the processes of risk management to replace the existing standards and methodologies. There is a lot to learn about such a concept from our management assignment help experts at My Assignment Services.

What is Risk?

A risk can be simply termed as the effect of uncertain things on the objectives. Applying risk treatment procedures ensures the uncertainty to be reduced, avoided, removed or modified.

Principles of Risk Management

Let us take a look at what risk management considers the methodologies involved:

• Creation and protection of values - A good risk management helps to contribute towards the achievement of an agency’s objectives by continuously reviewing the processes as well as systems.
• An integral component of an organisation - Risk management integrates with framework and planning processes that work at the operational and strategic levels.
• Effective decision making - Risk management and its associated processes help decision-makers in making informed choices, selecting appropriate action and identifying priorities.
• Explicitly address the potential risks - Implementing different control procedures and treatments by maximising the gains and minimising the losses.
• Systematic and structured - The risk management processes should be consistent to ensure efficient and productive results.
• The medium of transparency and inclusiveness - The process should be aligned with the internal and external stakeholders throughout the risk management procedure, it is recognised with the help of identifying, analysing and managing risks.
• Dynamic and iterative - The management of risk needs to be flexible where the environment is challenging and requires different agencies to manage risks as well as continue to identify new risks that can emerge and make allowances.

Attributes To Enhance The Process Of Risk Management

There are specific attributes that need to enhance risk management processes. An organisation should be accountable for their risk as well as undertaking a comprehensive control and treatment strategies. They have to set their own performance goals, the specific measures as well as review and review such processes corresponding to their systems, resources, and skills that ensure a continuous improvement plan.