ISO 31000 19011 Legal Risk Management Guidelines

ISO 31000 is an international standard, which was first published in the year 2009. It provides guidelines for effective management of risks. This standard provides a general method of managing risk that can be applied to any type of risks (financial and safety) and can be used by any company. It provides a standard vocabulary and terms which can be utilized in discussions about risk management. It includes guidelines and principles that can be used as a basis in assessing the risks your company faces management. It doesn't contain specific requirements or instructions to manage specific risks. Nor does it provide advice about specific application.
Relative to older standards on risk management, the 31000 standard innovates in several areas:
ISO 31000 provides a new definition of risk as the influence of uncertainty on the likelihood of meeting the company's goals, highlighting the importance of defining objectives before attempting to manage risks, and highlighting the importance of uncertainty.
ISO 31000 introduces a controversial concept known as risk appetite. It is the amount of risk an organization takes on in return to the expected value.
ISO 31000 is a framework which manages risk. It comes with different organizational procedures.
ISO 31000 is a management philosophy in which risk management is an integral part of strategic decision making as well as the management change. See Risk management - Guidelines for info.

The ISO 31000 standard
The ISO 31000 standard defines the risk management process as following:
Risk identification: identifying what might hinder us from reaching our objectives.
Risk analysis: Understanding the causes and the sources of identified risks. Examining the probability and impact of the existing controls to assess the residual risk.
Risk evaluation: This is the process of comparing results from risk analysis with risk criteria in order to determine if residual risk can be accepted.
Risk treatment: To reduce the probability of adverse consequences and increase benefits, you can alter their magnitude. See Guidelines for auditing management systems for more.

Establishing the context: this activity, which was not included in earlier risk management process descriptions, is about defining the scope for the risk management process, defining the goals of the organization, as well as setting the risk evaluation criteria. The context can include both external elements like the market and stakeholder expectations as well as the regulatory environment, and regulatory environment. It can also include internal elements like the organization's governance culture as well as standards and regulations capabilities and information systems, workers expectations and the governance of the organization. Learn more about the context.

Monitoring and review: This involves evaluating the risk management's performance against an indicator which is reviewed regularly to ensure its accuracy. This includes analyzing deviations from the risk management plan, checking whether the policy and plan remain appropriate in the external and internal context of organizations, reporting on risks, progress with risk management plans, as well as how effectively the policy is being implemented, as well as reviewing the effectiveness the risk-management framework.

Consultation and communication. This is a way to better understand the concerns of stakeholders and make sure that the process of managing risk is focusing on the right aspects. The standard outlines a variety of guidelines which risk management should be in compliance with:

ISO 31000 is a way to create and preserve value
ISO 31000 is based on the most reliable information
ISO 31000 is an integral component of every organizational process.
ISO 31000 is a custom-made standard
ISO 31000 is a part of the decision-making process
ISO 31000 considers human and cultural aspects
ISO 31000 addresses specifically uncertainty
ISO 31000 is transparent, all inclusive
ISO 31000 aims to be efficient, timely and organized.
ISO 31000 is dynamic, adaptive and responsive to changes
ISO 31000 allows for continuous improvement within the company.

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