ISO 31000:2018 - Risk management
ISO 14 Febbraio 2018
Risks affecting organizations can have consequences in terms of economic performance and professional reputation, as well as environmental, safety and societal outcomes. Therefore, managing risk effectively helps organizations to perform well in an environment full of uncertainty.
ISO 31000:2018, Risk management – Guidelines, provides principles, framework and a process for managing risk. It can be used by any organization regardless of its size, activity or sector.
Using ISO 31000 can help organizations increase the likelihood of achieving objectives, improve the identification of opportunities and threats and effectively allocate and use resources for risk treatment.
However, ISO 31000 cannot be used for certification purposes, but does provide guidance for internal or external audit programmes. Organizations using it can compare their risk management practices with an internationally recognised benchmark, providing sound principles for effective management and corporate governance.
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This document was prepared by Technical Committee ISO/TC 262, Risk management.
This second edition cancels and replaces the first edition (ISO 31000:2009) which has been technically revised.
The main changes compared to the previous edition are as follows:
- highlighting of the leadership by top management and the integration of risk management, starting with the governance of the organization;
- greater emphasis on the iterative nature of risk management, noting that new experiences, knowledge and analysis can lead to a revision of process elements, actions and controls at each stage of the process;
- streamlining of the content with greater focus on sustaining an open systems model to fit multiple needs and contexts.
This document is for use by people who create and protect value in organizations by managing risks, making decisions, setting and achieving objectives and improving performance.
Organizations of all types and sizes face external and internal factors and influences that make it uncertain whether they will achieve their objectives.
Managing risk is iterative and assists organizations in setting strategy, achieving objectives and making informed decisions.
Managing risk is part of governance and leadership, and is fundamental to how the organization is managed at all levels. It contributes to the improvement of management systems.
Managing risk is part of all activities associated with an organization and includes interaction with stakeholders.
Managing risk considers the external and internal context of the organization, including human behaviour and cultural factors.
Managing risk is based on the principles, framework and process outlined in this document, as illustrated in Figure 1. These components might already exist in full or in part within the organization, however, they might need to be adapted or improved so that managing risk is efficient, effective and consistent.
Figure 1 — Principles, framework and process
This document provides guidelines on managing risk faced by organizations. The application of these guidelines can be customized to any organization and its context.
This document provides a common approach to managing any type of risk and is not industry or sector specific.
This document can be used throughout the life of the organization and can be applied to any activity, including decision-making at all levels.
2 Normative references
There are no normative references in this document.
3 Terms and definitions
For the purposes of this document, the following terms and definitions apply.
ISO and IEC maintain terminological databases for use in standardization at the following addresses:
- ISO Online browsing platform: available at http://www.iso.org/obp
- IEC Electropedia: available at http://www.electropedia.org
effect of uncertainty on objectives
Note 1 to entry: An effect is a deviation from the expected. It can be positive, negative or both, and can address, create or result in opportunities and threats.
Note 2 to entry: Objectives can have different aspects and categories, and can be applied at different levels.
Note 3 to entry: Risk is usually expressed in terms of risk sources (3.4), potential events (3.5), their consequences (3.6) and their likelihood (3.7).
coordinated activities to direct and control an organization with regard to risk (3.1)
person or organization that can affect, be affected by, or perceive themselves to be affected by a decision or activity
Note 1 to entry: The term “interested party” can be used as an alternative to “stakeholder”.
element which alone or in combination has the potential to give rise to risk (3.1)
occurrence or change of a particular set of circumstances
Note 1 to entry: An event can have one or more occurrences, and can have several causes and several consequences (3.6).
Note 2 to entry: An event can also be something that is expected which does not happen, or something that is not expected which does happen.
Note 3 to entry: An event can be a risk source.
outcome of an event (3.5) affecting objectives
Note 1 to entry: A consequence can be certain or uncertain and can have positive or negative direct or indirect effects on objectives.
Note 2 to entry: Consequences can be expressed qualitatively or quantitatively.
Note 3 to entry: Any consequence can escalate through cascading and cumulative effects.
chance of something happening
Note 1 to entry: In risk management (3.2) terminology, the word “likelihood” is used to refer to the chance of something happening, whether defined, measured or determined objectively or subjectively, qualitatively or quantitatively, and described using general terms or mathematically (such as a probability or a frequency over a given time period).
Note 2 to entry: The English term “likelihood” does not have a direct equivalent in some languages; instead, the equivalent of the term “probability” is often used. However, in English, “probability” is often narrowly interpreted as a mathematical term. Therefore, in risk management terminology, “likelihood” is used with the intent that it should have the same broad interpretation as the term “probability” has in many languages other than English.
measure that maintains and/or modifies risk (3.1)
Note 1 to entry: Controls include, but are not limited to, any process, policy, device, practice, or other conditions and/or actions which maintain and/or modify risk.
Note 2 to entry: Controls may not always exert the intended or assumed modifying effect.