ISO 31000 provides general principles and standards for risk management in any public or private organization. It is not specific to any industry or sector, and can be applied to any type of risk and in a wide range of activities and transactions.
Risk is defined as any event that prevents an organization from achieving its operational, financial or strategic objectives. So if you have your own company, ISO 31000 risk management certification cost is very important for you. Keep reading this Modern Quality Makers article about ISO 31000 risk management certification cost.
What is the ISO 31000 Risk Management System for Enterprises?
You should know first what is the ISO 31000 Risk Management System before discussing ISO 31000 risk management certification cost.
Risk is the possibility of any positive or negative event occurring that hinders the achievement of desired results.
Any organization wants to be successful but there are a set of internal and external factors that cause uncertainty and are known as risks. The activities of companies producing goods or services are always at risk so these risks must be recognized and possible measures must be taken before the risk occurs.
ISO 31000 Risk Management System is an international standard published by ISO that defines risk management. The purpose of the standard is to provide general methodologies and rules for risk management.
Benefits of ISO 31000 Risk Management System
- Provides operational efficiency and increases effectiveness
- Builds stakeholder confidence in risk management
- Improves the performance and resilience of the management system
- Protects your company as you grow by responding effectively to change
- Increases the likelihood of achieving objectives
- Encourages proactive management.
- Provides opportunity and threat analysis
- Helps improve stakeholder confidence and trust
- Anticipates future challenging situations
- Ensures prevention before risks arise
- Save time
- Prevents waste welding
- Ensures risks are kept to reasonable levels
- Ensures business continuity
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What are the basic principles of an organization’s risk management system (ISO 31000)?
The basic principle of ISO 31000 Enterprise Risk Management is to prevent events that will create risk with proper analysis in advance and to prevent them even without assuming the risk status.
Other important principles include:
- Risks that may arise during the operations of the facility are carefully identified and evaluated in detail and measures are taken to reduce or eliminate these risks.
- Manage corporate risks and enable them to continue their activities without harm.
- Create and implement consistent and recurring risk management plans for companies, not just once.
- Create value for the company and maintain that value.
- To give the company an edge over its competitors.
- Ensure that risk management processes are part of the company’s daily business operations.
- Be part of the decision-making system.
- Prevent potential risk conflicts within the company.
- Raise awareness of risk management among employees.
Types of risks
Risks must first be identified within the organization. Risks are too diverse to be categorized.
They include:
- Market risks
- Credit risks
- Legal risks
- Reputation risks
- Environmental risks
- Operational risks
- Occupational accident risks
- Occupational disease risks
- Many other risks.
What documents are required to implement the risk management system in ISO 31000 Enterprise?
When applying to certification bodies for certification, you must first complete the application form. Then all the documents prepared during the installation of the system must be opened before the certification body.
These documents may be submitted on paper or in a place accessible to the certification body online.
The documents that will be opened to the certification body will include:
- Corporate Risk Management Manual
- Corporate Organization Chart
- Risk Management Business Processes
- Updated Job Descriptions
- Risk Management Implementation Instructions
- Similar documents.
- In addition, the company must provide the certification body with documents such as a copy of the circular, a copy of the commercial register newspaper and a copy of the chamber’s registry record.
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Risk Management Process According to ISO 31000
Risk management according to ISO 31000 includes a set of critical stages that aim to enhance the ability of organizations to identify, analyze, assess and respond to risks effectively.
1. Risk Identification and Analysis
Exploration process: Various techniques such as workshops, surveys, and data analysis are used to identify potential risks that may affect the achievement of the organization’s objectives.
Comprehensiveness of definition: Potential risks should include all aspects of the organization, including operational, financial, strategic, and reputational processes.
Risk nature assessment: Studying the characteristics of identified risks to identify their potential sources and causes, while understanding the contexts that may lead to their occurrence.
Measuring impact and likelihood: Using analytical tools such as impact assessment and likelihood analysis to estimate the severity and likelihood of each risk, helping to clearly understand how serious each risk is.
2. Risk evaluation
Risk avoidance: Taking proactive steps to eliminate activities or processes that may cause a risk.
Impact mitigation: Implementing measures to reduce the likelihood of a risk occurring or its potential impact.
Risk transfer: Transferring some or all of the risk to another party, such as purchasing insurance or contracting with a business partner to bear part of the risk.
Accepting risks: In some cases, an organization may decide to accept risks as part of a business strategy if the cost or effort required to address them outweighs the expected benefit of controlling them.
Developing treatment plans: Preparing detailed plans for implementing the chosen strategies for each risk, including identifying resources and responsibilities.
Ongoing monitoring: Ensuring that the implemented strategies are working as planned and can be modified as needed.
Monitor implementation: Regularly track the implementation of risk management strategies to ensure they are effective and responsive to set objectives.
Analyze results: Review the results of the measures taken and assess whether risks have been managed effectively or if they require further adjustments.
Lessons learned: Use past analyses to identify what can be improved in future risk management processes.
Update policies and procedures: Modify existing policies and procedures based on the results and experiences gained to ensure adaptation to changes and developments.
ISO 31000 risk management certification cost
ISO 31000 risk management certification cost is variable as it is affected by many factors including:
- Company size, large or small.
- Requirements needed for ِApplying the Quality System
- Number of consultants needed for evaluating the organization as the larger company, the more consultants needed for implementing the quality system in it.
- The facility’s specialization as industrial fields and companies have higher ISO 31000 risk management certification cost than other fields.
- Consulting company experience as a professional company with many years of experience in this field may be more expensive.
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- We have a professional team of experts.
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- A combination of professionalism and commitment.
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Conclusion
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