Every organization tries to minimize the uncertainties which can create undesired events and associated results with them. These events reduce the overall performance of an organization in achieving desired results.
The cost of applying controls over potentials risks is much less than the damage from undesired events. ISO 31000 is a complete management system to identify, quantify and categorize the potential risks and opportunities. The results from risk assessment make the job easier for risk handlers to apply necessary controls to bring those risks to an acceptable level.
With ISO 31000, organizations will know their compliance obligations and the consequences of deviation from the objectives and legal requirements. This helps the decision-makers to take the right decisions at the right time.
Furthermore, the risk management system will categorize the risks into critical, major, significant, and non-significant risks. Organizations can allocate required resources, assign responsibilities to competent team members to apply effective controls to manage the critical and major risks.
The benefits of the ISO 31000 risk management system is mainly that it increases the chances to achieve the objectives. In addition, it improves the financial health of the company and increases the confidence of stakeholders in the organization. Overall operations performance of the company grows and achieves desired results.
