Last updated on Mar 1, 2024

How can you use ISO 31000 to prioritize risks?

Risk management is a vital skill for any business manager, as it helps you identify, assess, and respond to uncertainties that could affect your objectives. However, how do you prioritize the risks that matter most, and allocate your resources accordingly? One useful tool is ISO 31000, a global standard for risk management principles and guidelines. In this article, you will learn how you can use ISO 31000 to prioritize risks in a systematic and consistent way.

1 What is ISO 31000?

ISO 31000 is a voluntary standard developed by the International Organization for Standardization (ISO), which provides a framework and a process for managing risk across any type of organization, sector, or activity. It is not a certification or a compliance requirement, but rather a set of best practices and recommendations that can help you improve your risk management performance. ISO 31000 defines risk as the effect of uncertainty on objectives, and emphasizes the importance of integrating risk management into your decision-making, governance, and culture.

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Eduardo Humberto

CEO | CFO | Diretor | Executivo | Controller | Administrativo-Financeiro
Ao utilizar a ISO 31000 para priorizar riscos, destaca-se a importância de uma abordagem sistemática, envolvimento de partes interessadas, avaliação contínua e a integração da gestão de riscos ao processo decisório. Esta norma oferece uma estrutura eficaz para identificar, avaliar e priorizar riscos, permitindo que as organizações otimizem recursos e foquem em áreas críticas para o sucesso e a sustentabilidade do negócio.

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Magdalena Martinez

Expert in HR, Artificial Intelligence, and Compliance. | Consultant | Speaker| Headhunter for board members and CEOs.
Estoy más que contenta de que me haya elegido la plataforma con este tema, porque es mi mero mole! El ISO 31000 en otras palabras es el ISO de gestión del Compliance, es voluntario y es aplicable a cualquier empresa. Ahora porque es recomendable? es una metodología super amigable y te ayuda a poner las reglas claras para los colaboradores e ir desahogando las denuncias que te vayan surgiendo. también te funciona para que todos los colaboradores comprendan que ya no pueden pasarse de listos.

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2 How does ISO 31000 work?

ISO 31000 consists of three main elements: the principles, the framework, and the process. The principles are the key characteristics that make risk management effective, such as being value-creating, stakeholder-oriented, and dynamic. The framework is the structure and arrangement that supports the implementation and maintenance of risk management throughout your organization, such as the policies, roles, and communication channels. The process is the steps and activities that help you identify, analyze, evaluate, treat, monitor, and review your risks, such as the risk criteria, the risk assessment methods, and the risk treatment options.

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3 How can you use ISO 31000 to prioritize risks?

Prioritizing risks is a key part of risk management, which involves ranking them according to their importance and urgency, and deciding which require attention and action. ISO 31000 offers a clear and consistent approach to prioritize risks, comprising the following steps: establishing the context by defining the scope, objectives, and boundaries of risk management activities, as well as the internal and external factors that may influence risks and their impacts; identifying sources, events, causes, and consequences of uncertainties through techniques such as brainstorming, interviews, surveys, checklists, or scenarios; analyzing the likelihood and impact of risks using qualitative or quantitative methods; evaluating risks against standards or thresholds such as risk appetite, risk tolerance, or risk level; and treating risks by selecting and implementing appropriate actions or controls to modify them based on the evaluation and strategy.

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Magdalena Martinez

Expert in HR, Artificial Intelligence, and Compliance. | Consultant | Speaker| Headhunter for board members and CEOs.
Algo que yo les comento mucho a las empresas es que simplemente cada área no puede vigilar lo que no tiene ni idea de que debe vigilar por eso recomiendo el Marco de Evaluación de Cumplimiento y Gobernanza Corporativa que te permite evaluar que % de cumplimiento según el índice de ética empresarial que incluye la perspectiva de todos los interesados, de esta forma vas teniendo un marco de dónde partir para medir riesgos propios de cada industria y localidad.

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4 What are the benefits of using ISO 31000 to prioritize risks?

Using ISO 31000 to prioritize your risks can offer several advantages, such as enhancing risk awareness and understanding with a common language and structured process for risk identification and analysis. It can also improve decision-making and planning by helping to focus on the most relevant and significant risks, while aligning risk treatment with objectives and resources. ISO 31000 also enables you to optimize risk opportunities and minimize threats, creating a positive risk culture and reputation. Finally, it can support risk improvement and learning by facilitating monitoring and review, as well as encouraging feedback and communication.

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Magdalena Martinez

Expert in HR, Artificial Intelligence, and Compliance. | Consultant | Speaker| Headhunter for board members and CEOs.
Existen varios beneficios, *A nivel marca generas confianza con todos los interesados. *A nivel gestión, donde hay reglas claras, la gente se alinea fácilmente por lo tanto disminuyen las cargas de trabajo causadas por delitos o faltas. *A nivel financiero menos gastos causados por multas y eliminas riesgos como que te congelen cuentas bancarias y similares. *También te ayuda cuando pides un crédito empresarial (eres de mas confiable), cuando exportas, licitas etc.... son medidas de transparencia que a todos les gustan! =)

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5 How can you get started with ISO 31000 to prioritize risks?

If you want to use ISO 31000 to prioritize your risks, you can start by getting familiar with the standard. Reading the official document or some of the available guides and resources online can help. Then, assess your current risk management situation and benchmark your practices against the standard. Plan your risk management implementation by defining your scope, objectives, and milestones, and assigning roles and responsibilities. Execute your risk management process by following the steps and activities described in the standard, while using tools and techniques that work for you. Finally, evaluate your risk management outcomes by measuring and reporting results, as well as identifying gaps and areas for improvement.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Magdalena Martinez

Expert in HR, Artificial Intelligence, and Compliance. | Consultant | Speaker| Headhunter for board members and CEOs.
Cualquier medida que implementes para control o cambio de cultura organizacional, ocupa que primero sensibilices a los colaboradores de tal forma que ellos deseen el cambio, en otras palabras es por su bien y en segundo lugar es super importante involucrarlos en la implementación, así hacen como suyo el proceso lo que implica mayor probabilidad de éxito.

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How can you use ISO 31000 to prioritize risks?

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1 What is ISO 31000?

2 How does ISO 31000 work?

3 How can you use ISO 31000 to prioritize risks?

4 What are the benefits of using ISO 31000 to prioritize risks?

5 How can you get started with ISO 31000 to prioritize risks?

6 Here’s what else to consider

Business Management

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How can you use ISO 31000 to prioritize risks?

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3

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1 What is ISO 31000?

2 How does ISO 31000 work?

3 How can you use ISO 31000 to prioritize risks?

4 What are the benefits of using ISO 31000 to prioritize risks?

5 How can you get started with ISO 31000 to prioritize risks?

6 Here’s what else to consider

Business Management

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