Principles of ISO 31000

11 Priciples of effective risk management    Principles of ISO 31000 

a) Risk management creates and protects value.

b) Risk management is an integral part of all organizational processes.

c) Risk management is part of decision making.

d) Risk management explicitly addresses uncertainty.

e) Risk management is systematic, structured and timely.

f} Risk management is based on the best available information.

g) Risk management is tailored.

h) Risk management takes human and cultural factors into account.

i) Risk management is transparent and inclusive.

j) Risk management is dynamic, iterative and responsive to change.

k) Risk management facilitates continual improvement of the organization.

The Importance of the Principles

During our three days together, we take the time to explain how and why these eleven principles are the foundation of this standard and the underpinnings of all organizations who manage uncertainties, thereby diminishing negative consequences and increasing positive outcomes.

Because all activities of an organization involve uncertainties which can affect their objectives, i.e. risk, this standard, more than any other, focuses its users on achieving organizational objectives.

This principled focus is critical for a planned deployment of ISO 31000 because of the requirement for a 'strong and enduring mandate and commitment' from senior management.