Why is Risk Management Important?
The answer is clear. Dale E. Jones once said: “Thoughtfully assessing and addressing enterprise risk and placing a high value on corporate transparency can protect the one thing we cannot afford to lose: trust.”
When enterprise risk management fails, your organization exposes itself to unnecessary fines, employee turnover, customer dissatisfaction, negative reputation, product or service failures, loss of profit, or missed opportunities.
What are some of the most typical reasons why enterprise risk management fails?
- Incapable leaders and lack of vision
- Inability to implement enterprise risk management
- Lack of convincing and actionable data
- Not integrating risk management with every-day activities
- Ignoring dysfunctionalities in the culture of the organization
When considering the above, the need for a structured approach for the management of enterprise risks is obvious.
What is Enterprise Risk Management?
Enterprise risk management (ERM) is a methodology that looks at risk management strategically from the perspective of the entire organization. It is a top-down strategy that aims to identify, assess, and prepare for potential losses, dangers, hazards, and other potentials for harm that may interfere with an organization’s operations and objectives and/or lead to losses.
ERM takes a holistic approach and calls for management-level decision-making that may not necessarily make sense for an individual business unit or segment. Thus, instead of each business unit being responsible for its own risk management, organization-wide governance is given precedence.
ERM manages several types of risk:
- Hazard risks include risks that present a high level of threat to life, health, or property
- Financial risks refer to risks that are directly related to money. They include an increase in costs or a decline in revenues
- Strategic risks are risks that affect or are created by strategic business decisions
- Operational risks are risks that materially affect an organization
After a risk has been identified and assessed, an organization has several options to mitigate it:
- Risk avoidance attempts to eliminate the risk
- Risk reduction attempts to limit the severity of losses
- Alternative actions seek for other possible ways to reduce the risk
- Share or insure is the action to transfer the risks to third parties
- Risk acceptance is the acknowledgement if the identified risks and the willingness to accept their consequences
ISO 31000 is an international standard that provides guidance on implementing an enterprise risk management capability.
What is ISO 31000?
ISO 31000 is a family of standards relating to risk management. It provides principles and generic guidelines on managing risks faced by organizations. Furthermore, the standard includes a framework and a process for managing risk. It can be used by any organization regardless of its size, activity, or sector.
Using ISO 31000 can help organizations increase the likelihood of achieving objectives, improve the identification of opportunities and threats and effectively allocate and use resources for risk treatment.
It is not possible for organizations to become an ISO 31000 certified organization. The standard serves as guidance to manage enterprise risks.
ISO 31000 Certification and Education
ISO 31000 certification training and education targets the ability of an organization to manage enterprise risks, also referred to as organizational risks.
The target audience of our ISO 31000 Fundamentals training course is anyone working for an organization. This includes leadership, management, and team members. The course aims to raise awareness and understanding.
Why INTERPROM As Your Educator?
Why would you have us educate you on this important topic? Because it is our prized and knowledgeable educators who make us who we are. They possess and share their decades-long of hands-on risk management experience. And that is during every class that they teach. You definitely want to be the beneficiary of this. As a result, this makes INTERPROM a top pick for all your risk management training needs.
In addition, all our instructors have led dozens of organizations towards ISO certification. For example, ISO/IEC 27001, ISO 22301, and ISO/IEC 20000. These, and so many other ISO standards require you to implement a risk management capability. And ISO 31000 is recommended and followed. Therefore, you can be assured that the training you are being provided with is of quality. Above all, it is rich in real-world risk management content. In other words, it is backed by the promise of our instructor’s experience.
Students from around the globe have attended our ISO 31000 courses.
For the ISO 31000 course listed above, click on “Learn More” for the course curriculum, course prerequisites, the intended audience, the exam preparation, the delivery formats and course fees.