The international risk management standard, ISO 31000:2018 Risk management — Guidelines, provides guidelines on managing risk. These guidelines can be customised to any situation and applied to any activity, including decision-making.
ISO 31000 can be used by anyone – individuals, groups of people, families, teams, organisations and governments – who wants to:
- Create and protect value by managing risks.
- Making decisions.
- Setting and achieving objectives.
- Improving performance.
In the context of this risk management standard, ‘risk’ is defined as ‘the effect of uncertainty on objectives’. The notion of risk is closely linked to uncertainty.
Risk can only be meaningfully defined in relation to objectives because it relates to the effect of uncertainty on objectives that have a potential consequence – good or bad – on your success.
It cannot exist in a vacuum. It must exist in relation to the achievement of your objectives.
The simplest definition of risk is “uncertainty that matters”. Risk can affect one or more of your objectives, or what might happen.
Curriculum
- 2 Sections
- 2 Lessons
- 52 Weeks
