What is EN ISO 31070:2018?

EN ISO 31070:2018 is a professional technical standard that provides guidelines for risk management in organizations. This internationally recognized standard was developed by the International Organization for Standardization (ISO) and the European Committee for Standardization (CEN) to address the need for a systematic approach to managing risks in various sectors.

Scope of EN ISO 31070:2018

The scope of EN ISO 31070:2018 covers all types of organizations, regardless of size or industry. It outlines the principles, framework, and process for risk management, enabling organizations to identify, assess, and prioritize risks effectively. The standard emphasizes the importance of integrating risk management into an organization's overall management system, ensuring that it becomes a part of the decision-making process at all levels.

Main Elements of EN ISO 31070:2018

EN ISO 31070:2018 consists of several key elements that form the foundation of an effective risk management system:

Risk context establishment: This involves understanding the internal and external factors that can influence the organization's objectives and the identification of risk sources.

Risk assessment: This step includes the evaluation of risks in terms of probability, impact, and their potential interactions. It helps organizations prioritize risks and allocate appropriate resources for their management.

Risk treatment: Once risks are identified and assessed, this element focuses on selecting and implementing appropriate measures to treat, transfer, or mitigate risks.

Risk communication and consultation: Effective risk communication ensures that relevant information is shared with stakeholders at all levels. Consultation with stakeholders allows for their involvement and input in the risk management process.

Monitoring and review: This element emphasizes the importance of continuous monitoring, reviewing, and updating of the risk management system to ensure its effectiveness and adaptability to changing circumstances.

Benefits of EN ISO 31070:2018

Implementing EN ISO 31070:2018 offers several advantages for organizations:

Better decision-making: The systematic approach provided by the standard enables organizations to make informed decisions by considering all potential risks and their impacts.

Enhanced risk awareness: EN ISO 31070:2018 promotes a culture of risk awareness and proactive risk management, leading to improved organizational resilience.

Improved efficiency: By prioritizing and allocating resources effectively, organizations can optimize their risk management efforts and minimize potential losses.

Enhanced stakeholder confidence: Implementing a recognized risk management standard demonstrates an organization's commitment to managing risks and can instill confidence in stakeholders, such as customers, investors, and regulators.

Overall, EN ISO 31070:2018 provides a robust framework for organizations to identify, assess, and manage risks systematically. By adopting this standard, organizations can enhance their decision-making processes and improve their resilience in an increasingly uncertain business environment.