ISO 31000 2009

TRANSLATED INTO PLAIN ENGLISH

ISO 31000 is a generic risk management standard. It can be used by any organization no matter
what size it is or what it does. It can be used by both public and private organizations and by
groups, associations, and enterprises of all kinds. It is not specific to any sector or industry and can
be applied to any type of risk. ISO 31000 can be applied to the achievement of any and all types of
objectives at all levels and areas within an organization. It can be used at a strategic or
organizational level to help make decisions and can be applied to all types of activities. It can be
used to help manage processes, operations, projects, programs, products, services, and assets.

This page presents an overview of ISO 31000 2009. It doesn't provide detail. It starts with section 3
because the ISO 31000 2009 guidelines start there.

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3. RISK MANAGEMENT PRINCIPLES

3(A) RISK MANAGEMENT SHOULD CREATE AND PROTECT VALUE

 Use risk management to create and protect value.

o Create and protect value by using risk management to help achieve your
organization’s objectives and improve its performance.

3(B) RISK MANAGEMENT SHOULD BE PART OF ALL PROCESSES

 Make risk management part of every process at every level.

 Make risk management a responsibility of every manager.

3(C) RISK MANAGEMENT SHOULD BE PART OF YOUR DECISION MAKING

 Make risk management part of decision making at all levels.

o Use risk management to make informed choices.
o Use risk management to prioritize actions.

3(D) RISK MANAGEMENT SHOULD BE USED TO HANDLE UNCERTAINTY

 Use risk management to address the uncertainty that you face.

o Use risk management to identify and define the nature and type of uncertainties that
your organization must deal with.
o Use risk management to figure out what you can do to address your organization’s
uncertainties.

3(E) RISK MANAGEMENT SHOULD BE SYSTEMATIC AND TIMELY

 Make sure that your organization’s approach to risk management is systematic, structured,
and timely.
o Make sure that your approach contributes to efficiency.
o Make sure that your approach generates reliable results.

3(F) RISK MANAGEMENT SHOULD BE BASED ON THE BEST DATA

 Make sure that the inputs you use to manage risk are based on the best available
information sources.
 Make sure that decision makers understand and consider the limitations and shortcomings
of the data they use to manage risk.

3(G) RISK MANAGEMENT SHOULD BE TAILORED TO YOUR ENVIRONMENT

 Make sure that your organization’s approach to risk management is aligned with its unique
internal and external context.
 Make sure that your organization’s approach to risk management is aligned with its risk
profile.

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3(H) RISK MANAGEMENT SHOULD CONSIDER HUMAN FACTORS

 Make sure that your approach to risk management recognizes and considers the human and
cultural factors that can influence the achievement of your organization’s objectives.
o Consider how human capabilities can facilitate or hinder the achievement of your
objectives.
o Consider how human perceptions can facilitate or hinder the achievement of your
objectives.
o Consider how human intentions can facilitate or hinder the achievement of your
objectives.

3(I) RISK MANAGEMENT SHOULD BE TRANSPARENT AND INCLUSIVE

 Make sure that your approach to risk management is transparent.

o Make sure that your organization’s approach to risk management is open, visible,
and accessible.
 Make sure that your approach to risk management is inclusive.
o Involve your organization’s stakeholders.
o Involve decision makers from all parts of your organization.

3(J) RISK MANAGEMENT SHOULD BE RESPONSIVE AND ITERATIVE

 Make sure that your organization’s approach to risk management is dynamic and
responsive.
o Make sure that your approach to risk management continually senses change and
responds to it.
 Make sure that your approach to risk management is ongoing.
o Repeat your risk management process whenever and wherever objectives need to be
achieved.

3(K) RISK MANAGEMENT SHOULD SUPPORT CONTINUAL IMPROVEMENT

 Use risk management to improve all aspects of your organization.

 Develop strategies to improve your approach to risk management.

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4. RISK MANAGEMENT FRAMEWORK

4.1 ESTABLISH A RISK MANAGEMENT FRAMEWORK

 Make risk management part of your management system.

o Establish an effective risk management framework.
o Use your framework to support risk management process.

4.2 MAKE A COMMITMENT TO RISK MANAGEMENT

 Define your organization’s risk management policy.

 Establish risk management performance indicators.
 Formulate risk management objectives.
 Assign risk management responsibilities.
 Allocate risk management resources.
 Communicate risk management benefits.
 Support your risk management framework.

4.3 DESIGN YOUR RISK MANAGEMENT FRAMEWORK

4.3.1 Understand your organization's context

 Evaluate and understand your organization’s external context and then use this knowledge
to design your risk management framework.
o Evaluate and understand your external environment.
o Evaluate and understand your external stakeholders.
o Evaluate and understand your external influences.
 Evaluate and understand your organization’s internal context and then use this knowledge
to design your risk management framework.
o Understand your organization’s internal stakeholders.
o Understand your organization’s governance.
o Understand your organization’s capabilities.
o Understand your organization’s culture.
o Understand your organization’s standards.
o Understand your organization’s contracts.

4.3.2 Formulate your risk management policy

 Establish a risk management policy for your organization.

o Make a clear commitment to risk management.
o Define your risk management objectives.
o Explain how your policy will be implemented.
 Communicate your risk management policy.

4.3.3 Make people accountable for managing risk

 Identify your organization’s risk owners.

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  Give risk owners the authority to manage risk.
 Make risk owners accountable for managing risk.
 Establish risk management performance measurement methods.
 Develop risk management reporting and escalation processes.

4.3.4 Build risk management into your organization

 Make risk management a part of all processes and practices.

 Develop an organization-wide risk management plan.

4.3.5 Allocate resources for risk management

 Allocate appropriate resources to support your organization’s risk management activities.

o Consider providing people who can support your organization’s risk management
activities.
o Consider providing resources needed to support each step of the risk management
process.
o Consider providing information and knowledge management systems to support risk
management.
o Consider providing risk management procedures and processes.
o Consider providing appropriate risk management methods and tools.

4.3.6 Establish internal communication mechanisms

 Establish internal risk management communication and reporting processes and

mechanisms.

4.3.7 Develop an external communication plan

 Develop a plan that describes how you intend to communicate with your external
stakeholders.
 Implement your risk management communication plan.

4.4 IMPLEMENT YOUR APPROACH TO RISK MANAGEMENT

4.4.1 Implement your risk management framework

 Develop a strategy to implement your organization’s framework.

 Implement your organization’s risk management framework.

4.4.2 Implement your risk management process

 Develop a plan that explains how you intend to apply your organization’s risk management
process (Part 5).
 Use your risk management plan to implement your organization’s risk management process
(Part 5).

4.5 MONITOR YOUR RISK MANAGEMENT FRAMEWORK

 Evaluate the ongoing effectiveness of your organization’s risk management framework.

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  Prepare reports on the effectiveness of your organization’s risk management framework.

4.6 IMPROVE YOUR RISK MANAGEMENT FRAMEWORK

 Study the results of your organization’s risk management monitoring and review activities
(see Part 4.5, above).
 Figure out how you’re going to improve your organization’s risk management framework.

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5. RISK MANAGEMENT PROCESS

5.1 APPLY YOUR RISK MANAGEMENT PROCESS

 Apply your risk management process (see Part 5.2 to 5.6).

o Make your risk management process part of your organization’s management
approach.
o Make your risk management process part of your organization’s unique culture.

5.2 COMMUNICATE AND CONSULT WITH YOUR STAKEHOLDERS

 Communicate and consult with stakeholders during all stages of the risk management
process.
 Use a consultative team approach to communicate and consult with your organization’s
stakeholders.

5.3 ESTABLISH YOUR UNIQUE RISK MANAGEMENT CONTEXT

5.3.1 Establish your risk management parameters

 Identify and understand the parameters and variables that influence and control how your
organization manages risk.
o Define your organization’s external context (see Part 5.3.2).
o Define your organization’s internal context (see Part 5.3.3).

5.3.2 Establish your organization's external context

 Identify and understand your organization’s external context and consider the influence it
could have on its ability to manage risk and achieve its objectives.
o Identify and understand environmental conditions and consider the influence they
could have on your organization’s ability to achieve its objectives.
o Identify and understand key external factors and consider the influence they could
have on your organization’s ability to achieve its objectives.
o Identify and understand the relationships you have with external stakeholders and
consider the influence they could have on your organization’s ability to achieve its
objectives.
 Consider your organization external context when you develop your organization’s risk
criteria (see Part 5.3.5 for details).
o Consider the concerns, objectives, and perceptions of external stakeholders when you
formulate your risk criteria.

5.3.3 Establish your organization's internal context

 Identify and understand your organization’s internal context and consider the influence it
could have on its ability to manage risk and achieve objectives.
o Understand your organization’s internal stakeholders.
o Understand your organization’s governance structure.
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 o Understand your organization’s capabilities.
o Understand your organization’s culture.
o Understand your organization’s standards.
o Understand your organization’s contracts.

5.3.4 Establish the context of your risk management process

 Establish the unique context of your risk management process.

o Adopt a risk management approach that is appropriate to your circumstances and
consistent with your context.
o Identify the organizational areas or parts that will participate in your risk
management process and make sure you understand what they do and how they do
it.
 Clarify how each specific risk management process or activity should be organized and
managed.
o Define the goals and objectives of the risk management activities and projects you
intend to carry out.
o Define the resources that your risk management activities and projects will need.
o Define the risk management responsibilities and authorities of all process
participants.
o Define the focus of each risk management project including where and when it will be
carried out.
o Define the decisions that will need to be made as you carry out each risk management
process.
o Define the risk assessment methodologies that you intend to use for each risk
management process or project.
o Define how your risk management process is related to your organization’s other
processes.
o Define the studies that you intend to carry out to support each risk management
process.
o Define how risk management process performance and effectiveness will be
evaluated.
o Define the records that each risk management process or activity should maintain.

5.3.5 Establish your organization's risk criteria

 Define your organization’s risk criteria.

o Consider your organization and how it functions when you define your risk criteria.
o Consider the views of your organization’s stakeholders when you define your risk
criteria.
o Consider the nature and type of causes when you define your organization’s risk
criteria.
o Consider the consequences and impacts that could occur when you define your risk
criteria.
o Consider how likelihood or probability will be determined when you define your risk
criteria.
o Consider how the level of risk will be determined when you define your
organization’s risk criteria.
o Consider whether combinations of multiple risks should be taken into account when
you define your risk criteria.
 Review and periodically update your risk criteria.

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 5.4 CARRY OUT YOUR ORGANIZATION’S RISK ASSESSMENT PROCESS

5.4.1 Identify, analyze, and evaluate risks

 Carry out your risk assessment process.

o Identify your organization’s risks (see Part 5.4.2 for details).
o Analyze your organization’s risks (see Part 5.4.3 for details).
o Evaluate your organization’s risks (see Part 5.4.4 for details).

5.4.2 Identify your organization's risks

 Choose suitable risk identification tools and techniques.

 Select suitable people to identify your organization’s risks.
 Use your tools and techniques to identify the risks that could affect the achievement of your
organization’s objectives.
 Generate a comprehensive list of risks that could affect the achievement of your
organization’s objectives.

5.4.3 Analyze your organization's risks

 Analyze the risks that your organization faces.

 Estimate your organization’s level of risk.
 Specify how much confidence you have in your analysis.
 Use your risk analysis to understand your organization’s risks.
 Communicate the results of your risk analysis.

5.4.4 Evaluate your organization's risks

 Use your risk analysis results to evaluate your organization’s risks.

 Use your risk analysis results to consider your risk treatment options.

5.5 FORMULATE AND IMPLEMENT YOUR RISK TREATMENT PLANS

5.5.1 Explore your organization's risk treatment options

 Establish a cyclical risk treatment process.

 Consider your organization’s risk treatment options.

5.5.2 Select your organization's risk treatment options

 Select the most appropriate risk treatment options.

 Plan the implementation of your risk treatments.

5.5.3 Prepare risk treatment implementation plans

 Document your organization’s risk treatment plans.

 Discuss risk treatment plans with all participants.
 Carry out your risk treatment implementation plans.

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 5.6 MONITOR AND REVIEW YOUR RISK MANAGEMENT PROCESS

 Plan your risk management monitoring and review processes.

 Monitor and review all aspects of your risk management process.
 Record your organization’s monitoring and review results.
 Report your risk management monitoring and review results.

5.7 MAINTAIN A RECORD OF RISK MANAGEMENT ACTIVITIES

 Create and maintain records to support risk management process.

 Use your records to support your risk management process.

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