Risk management – the ability to identify and overcome just about any potential risk – is a key part of governance and leadership. Whether you’re leading a municipality or business, ISO 31000 provides you with a plan of action for identifying the multitude of risks that could potentially affect your operations.
To make sure you can identify the risks that could affect your services, it’s important to understand exactly what the word “risk” means. Because it’s more than a matter of mere semantics, the ISO experts at AEGIS Services discuss how the ISO 31000 governing body identifies risk.
How Exactly is Risk Defined by ISO 31000?
The core aspect of ISO 31000 revolves around the fact that, regardless of your mission or business, we are operating in an uncertain environment.
Previous definitions or standards for identifying risks revolved around things that might happen and their impact on an organization’s missions.
The ISO 31000 definition of risk, however, shifts attention away from the actual event to the effect itself.
For example, the ISO 31000 definition would not identify a disruption to your supply chain as the risk. Rather, the risk would be your ability to return to normal business operations from a disruption to your supply chain.
Are the Definitions of Risk that Different?
While both the traditional and ISO 31000 concepts of risk can certainly coexist, they are quite different.
While the concept of risk in the past has been thought of in mostly negative ways, the ISO 31000 definition recognizes that risk is merely a way of life, and cannot be avoided. The ISO 31000 method embraces the idea of modifying risks so that we are more likely to achieve our goals.
To Learn More about ISO 31000, Get in Touch with AEGIS Services
Here at AEGIS Services, we’ve worked hard to earn our reputation for helping businesses and organizations ensure they’re still operational when threats and disaster strike.
By developing an effective BCP and ISO 31000 certification, you are assuring your stakeholders that doing business with you is a wise and safe choice, which in reality is priceless.