What is ISO 31000 Risk Management?

ISO 31000 Risk Management?

What is ISO 31000 Risk Management? All organisations exist to serve a purpose. This is often described as a vision or a strategic direction and a number of objectives will be set in place to try and achieve this vision or purpose. As defined by the international standard risk is the effect of uncertainty of objectives. Therefore, quite simply an organisation requires an effective risk management process to increase the likelihood of it achieving its objectives and ultimately it’s strategic purpose.

Risk management can also help an organisation ensure that it complies with relevant legal and regulatory requirements and;

Risk Management can also improve stakeholder confidence and trust in an organisations performance.

The ASX highlights that a listed entity should establish a sound risk management framework as a failure to recognise or manage risk can adversely impact not only the entity and it’s security holders but many other stakeholders. This would include employees, customers, creditors, suppliers, consumers, taxpayers and the broader community that the entity operates. These same principles apply for all businesses no matter how big or small.