Managing risks in any organization is not optional; it is necessary to maintain the organization and its path to success without incurring large, unforeseen losses. Hence, the importance of obtaining ISO 31000 certification for company emerges, which helps to anticipate these risks and avoid them or get out of them with the least possible losses.
iso 31000 certification for company
ISO 31000 is an international standard issued by the International Organization for Standardization that defines principles and guidelines for risk management in organizations. ISO 31000 certification for company is not an official accreditation like other ISO certifications, but companies that implement this standard can be assessed and recognized for following best risk management practices.
Applying the principles of this standard helps companies make informed decisions, reduce potential threats, and exploit opportunities more effectively.
It is worth noting that this standard can be applied to various sectors and industries.
ISO 31000 risk management benefits
Implementing the principles of the ISO 31000 standard provides companies with countless important benefits, the most prominent iso 31000 certification for company:
Improving companies’ Decision-Making
This standard enables organizations to accurately assess threats and opportunities, thereby making informed decisions that lead to better outcomes and reduce any surprises or unwanted risks.
Enhancing Stakeholder Confidence
When a company implements a clear risk management system, it demonstrates its commitment to accountability and transparency, which enhances the confidence of customers, investors, and all stakeholders.
Reducing Unexpected Losses
By analyzing potential risks early, an organization can avoid crises and mitigate their impact, which in turn undoubtedly reduces the costs resulting from disasters and crises.
Enhancing Resilience in Crisis Management
This standard also helps organizations build backup systems and emergency response plans that make them more adaptable to rapid or sudden changes and emerge from them with minimal losses.
Strong Competitive Advantage
Organizations that demonstrate strong risk management capabilities are viewed more credibly by partners and customers, which certainly gives them a strong competitive advantage in the market.
compliance with regulations and legislation
Implementing the principles of the ISO 31000 standard helps organizations comply with legal and regulatory requirements and demonstrates their readiness to meet regulatory requirements.
ISO 31000 requirements
To implement the ISO 31000 standard within a company, a set of basic steps must be followed, including:
- Define an organizational framework for risk management; the organization must create an organizational structure that defines roles and responsibilities for risk assessment.
- Define policies and procedures by formulating clear risk management policies that align with the organization’s objectives and overall strategy.
- Analyze the internal and external context to understand the organization’s surrounding environment, including political, economic, and technological factors that may impact its performance.
- Identify and assess potential risks within the organization by analyzing the types of potential risks and their potential impact on operations, and making sound decisions to address them.
- Continuously monitor and update the risk management system, as it must be dynamic and evolve with changes in the market and internal processes.
- The risk management system must also be integrated into daily operations, so that risk management is not an independent procedure, but rather an essential part of the culture and work style within the organization.
How to obtain iso 31000 certification for company
ISO 31000 certification is not obtained through an official accreditation body because it is a guiding standard and not accreditable (non-certifiable) like ISO 9001. However, companies can demonstrate their commitment to implementing the standard through an independent external assessment by a qualified body or through a comprehensive internal qualification.
The steps to obtain certification or recognition for implementing ISO 31000 include:
- The company assesses the current status of its risk management practices and compares them to the requirements of ISO 31000 to identify weaknesses and areas for improvement.
- Develop policies and procedures by establishing a clear risk management framework that includes policies, objectives, and an action plan.
- Raising the awareness of senior management and all employees within the company of the concepts of risk management and how to apply them.
- Initiate the implementation of risk management strategies and procedures on daily operations and measure associated performance.
- Conduct an internal audit to ensure that the organization’s risk management system is effective and achieves its objectives.
At MQM, we can help you achieve an integrated ISO 31000-compliant system with minimal cost and effort.
iso 31000 certification cost
ISO 31000 is not an official certification, but there is a specific cost involved in implementing this standard within a company. This cost depends on several variable factors, most notably the size of the company and the number of its branches, the company’s current readiness, the complexity of operations and risks, and the implementation period.
However, the average cost of ISO 31000 certification for company often ranges between 10,000 and 35,000 Saudi riyals.
Role of MQM in getting ISO 31000 risk management
MQM (Modern Quality Makers) plays a pivotal role in qualifying companies to implement best risk management practices in accordance with the ISO 31000 standard, through its professional and specialized services in the Saudi market, through:
- We begin with a comprehensive assessment of your company’s risk management situation and identify gaps that hinder compliance with the standard.
- We also help you build a comprehensive system tailored specifically to your business, in compliance with ISO 31000.
- Our team provides full support to the organization, from the initial assessment and development of an action plan to the internal and final audit.
- Preparing the reports and documentation required to demonstrate the company’s commitment to professionally implementing the risk management system.
- We also ensure that we provide an effective, cost-effective plan and a well-thought-out timeline to accelerate the process of achieving recognition for implementing the standard.
In conclusion, after clarifying everything related to ISO 31000 certification for company, do not hesitate to contact us now at MQM to put you on the right path to managing risks in a way that helps you avoid losses and enhances your customers’ confidence.
FAQs About ISO 31000 certification for company
1. Who needs ISO 31000?
Every organization seeks to manage risks systematically and effectively, whether governmental, private, industrial, or service.
2. What is ISO 31000 used for?
It is used for providing an effective framework for identifying, analyzing, and addressing risks, thus supporting better decision-making and reducing the risk of loss.
3. What is the difference between ISO 9001 and ISO 31000?
ISO 9001 focuses on implementing a quality management system, while ISO 31000 is concerned with managing risks and reducing their negative effects.
