ISO 31000 CORPORATE RISK MANAGEMENT SYSTEM
What is ISO 31000 Enterprise Risk Management System?
Regardless of size and in what type of industry, companies may face internal and external factors and influences that create uncertainty as to whether they will achieve their goals. This uncertainty over the goals of an institution / organization can be expressed as Corporate Risk, and the management of these risks can be expressed as Corporate Risk Management. Other broad definitions related to Enterprise Risk Management are specified in the following items;
-It is to analyze (analyze, examine) all the risks that an institution will encounter the idea of ??the establishment and take measures.
-It is for organizations to identify and analyze risks and then evaluate whether there is a need to reduce these risks through risk processing within the framework of risk criteria.
One of the studies conducted within the scope of corporate risk; It is the ISO 31000 Risk Management System created by the International Organization for Standardization, ISO (International Organization for Standardization). This system / standard; It is an international standard on how companies, institutions and organizations evaluate corporate risks and how these risks will be managed. It can also be referred to as "ISO 31000 Enterprise Risk Management System".The latest version of the ISO 31000 Standard was published in 2018, and currently there are only two editions. The current and valid edition of this standard is the second edition. You can hear this standard more as "ISO 31000: 2018 Standard", since it is the latest version that was published in 2018. You can also access ISO's original site this address and get detailed information about ISO 31000: 2018 Standard. The ISO 31000 Standard is a decision-making approach and explicitly addresses uncertainty. This system can be expressed as an integral part of organizational processes.
ISO 31000 standard; Regardless of its nature, it can be applied to all kinds of risks, whether they have positive or negative consequences. Although this standard provides general guidelines, it is not intended to encourage risk management association across organizations.
During the design and implementation of risk management plans and frameworks; The changing needs, specific objectives, structure, operations, context, processes, projects, products, services or assets of a particular organization and the specific methods adopted should be taken into account.
It is aimed to use the ISO 31000 Risk Management System to streamline existing and future risk management processes. This standard provides a general approach that supports standards that relate to specific risks and / or industries, but does not replace these standards. There is no documentation (certification) in this standard.
Can ISO 31000 Risk Management System Certification Be Made?
ISO 31000 Standard; It is a guideline standard that is not used for documentation or certification. For this reason, it is stated in the document related to this standard that this standard is not intended for documentation or certification. There is no document / certificate named "ISO 31000 Document" or "ISO 31000 Certificate".Companies that issue certificates with such names issue a certificate that does not have equivalency (accreditation, recognition).
Benefits of Creating an ISO 31000 Risk Management System
When the ISO 31000 Standard is implemented and maintained in harmony, it makes a significant contribution to the realization of the following items;
-Increasing the probability of achieving the goals,
-To encourage anticipatory (proactive, active) management,
-To be aware of the need to define and process throughout the organization
- Improving the identification of opportunities and threats,
-To comply with relevant legal and regulatory requirements and international norms,
-To improve compulsory and voluntary reporting,
- To ensure the trust of the shareholders,
-Creating a reliable basis for decision-making and planning,
-To improve controls and allocate resources effectively for risk processing,
-Improving business efficiency and productivity,
-Increasing health and safety performance as well as environmental protection,
- Improving damage prevention and incident management,
-Minimizing damages and improving organizational learning,
-To develop organizational effectiveness,
Which Organizations Does The ISO 31000 Risk Management System Concerns?
ISO 31000 Risk Management System regulates the principles and general principles regarding risk management. This standard; It can be used by any public, private or social enterprise, association, group or individual. For this reason, ISO 31000 Risk Management System is not specific to any industry or sector. For convenience, it is stated in the ISO 31000 standard that the term "organization" is used for all of the different users. This standard can be applied to a wide variety of activities of an organization throughout its life. As an example of these activities; strategies, decisions, operations, processes, functions, projects, products, services and assets can be given.