Risk: ISO Risk Standards
ISO (the International Organisation for Standardisation) is the world body for agreeing common standards across trade and and industry around the world. It sets out what organisations need to achieve to meet these standards. The aim is to give organisations confidence in their dealings with each other, wherever in the world they are based. This means buyers and specifiers do not have to start from a blank sheet of paper when defining what they want to buy.
If you are buying products or services, these international standards will help chose suppliers who have adopted best practice. These standards will also give your own customers and end-users confidence in the quality and reliability of your products or services.
International standards have been introduced for risk management. In the era of international free trade, these standards for risk management are helping to manage compliance issues, quality expectations, logistics and production scheduling to manage secure global supply chains around the world.
ISO 28000 is the Supply Chain Security Standard. ISO 31000 is the Risk Management Standard
ISO 28000
This is a standard for supply chains which focuses on business continuity through enhanced security. For example, computer systems and data protection; financial management against risk of fraud; secure warehousing.
Organisations with this standard can demonstrate a commitment to delivering systematic security management to customers, employees and investors.
The benefits to your organisation include:
- It makes it easier to trade goods across borders.
- You can monitor and manage security risks in your supply chain.
- It encourages your suppliers to secure their own processes.
- Cost savings through a reduction in security incidents and potentially lower corporate insurance premiums.
- Allows management to target investment in areas of concern.
ISO 31000
This standard guides organisations in the adoption and implementation of risk-related management practice.
It has many benefits, including:
- Greater ability to achieve the organisation’s objectives.
- A sound base for organisations to make decisions and plan for their operations.
- Minimising potential losses due to unplanned factors.
- Raising awareness of the need to identify and manage risk in the organisation.
- Implementation of the standard helps to develop a risk management culture
The culture of the organisation must change from a level where risk is not part of the management, to one where there is increased awareness, and planning takes place for any anticipated risks. It is important for the leadership of the organisation to communicate the benefits of such a policy.
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