ISO 31000 is a set of international standards for risk management. It was developed in November 2009 by International Organization for Standardization. The goal of these standards is to provide a consistent vocabulary and methodology for assessing and managing risk, resolving the historic ambiguities and differences in the ways risk are described. The standards were designed to fit into an integrated management system.
Introduction ISO 31000 was published as a standard on 13 November 2009, and provides a standard on the implementation of risk management. A revised and harmonized ISO/IEC Guide 73 was published at the same time. The purpose of ISO 31000 is to provide a guideline on managing risk faced by organizations Using a common approach for any type of risk and is not industry or sector specific. Users are "any public, private or community enterprise, association, group or individual." An updated version of ISO 31000 was published in February 2018, replacing the original 2009 edition. The 2018 revision introduced clearer and more concise language, placing greater emphasis on the integration of risk management into core business activities, decision-making processes, and organizational culture. It also reinforced the leadership role of top management in embedding risk management throughout the organization and promoted a more flexible, principles-based approach adaptable to organizations of all sizes and sectors. The version ISO 31000:2018 was confirmed in October 2023 and valid for the next five years.
Scope ISO 31000 provides a set of principles, guidelines for the design, implementation of a risk management framework and recommendations for the application of a risk management process. The risk management process as described in ISO 31000 can be applied to any activity, including decision-making at all levels. ISO 31000 helps companies establish the backbone of their Enterprise Risk Management (ERM) by providing a structured and principles-based framework for integrating risk management into all aspects of the organization. It guides companies in:
Defining a clear risk management policy aligned with objectives and culture Establishing governance and accountability through leadership involvement Embedding risk processes (identification, analysis, evaluation, treatment) into decision-making Ensuring continuous improvement through monitoring and review By following ISO 31000, organizations can build a consistent, organization-wide approach to managing risk that supports strategic goals and operational resilience.
Definitions ISO 31000 defines eight key terms related to the management of risk, forming the foundation for a consistent understanding of risk-related concepts across organizations. These terms are: risk, risk source, event, consequence, likelihood, risk identification, risk analysis, and risk evaluation. They are aligned with ISO 31073:2022 (formerly ISO Guide 73), which provides a standardized vocabulary for risk management. ISO 31073 supports the implementation of ISO 31000 by ensuring clarity and consistency in risk communication, helping organizations align their terminology internally and externally across various sectors and disciplines. -About the definition of risk-
One of the key paradigm shifts proposed in ISO 31000 is a change in how risk is conceptualised and defined. Under both ISO 31000 and ISO Guide 73, the definition of "risk" is no longer "chance or probability of loss", but "effect of uncertainty on objectives" ... thus causing the word "risk" to refer to negative consequences of uncertainty, as well as positive ones. A similar definition was adopted in ISO 9001:2015 (Quality Management Systems), in which risk is defined as, "effect of uncertainty." Additionally, a new risk related requirement, "risk-based thinking" was introduced there.
Structure The management of risks explained in the ISO 31000 standard is founded on three core components: principles, a framework, and a process. These elements work together to ensure that risk management is structured, integrated, and aligned with organizational objectives. The principles guide the overall intent and value of risk management, the framework embeds it into the organization’s governance and operations, and the process provides a systematic approach for identifying, assessing, and addressing risks. The relationship of the principles, the framework and the process can be visualized in an image located on the ISO Online Browsing Platform here The purpose of risk management is the creation and protection of value. It improves performance, encourages innovation and supports the achievement of objectives. The principles provide guidance on the characteristics of effective and efficient risk management, communicating its value and explaining its intention and purpose. The principles are the foundation for managing risk and should be considered when establishing the organization's risk management framework and processes. These principles should enable an organization to manage the effects of uncertainty on its objectives. To be effective, risk management should (be):
Integrated – Risk management is an integral part of all organizational activities. Structured and comprehensive – A structured and comprehensive approach contributes to consistent and comparable results. Customized – The framework and process are tailored to the organization’s external and internal context. Inclusive – Appropriate and timely involvement of stakeholders enables informed decision-making. Dynamic – Risk management anticipates, detects, acknowledges, and responds to changes. Uses best available information – Inputs to risk management are based on historical and current data, as well as future expectations. Considers human and cultural factors – Human behavior and culture significantly influence risk management. Continual improvement – Risk management is continuously improved through learning and experience. The purpose of the risk management framework is to support the integration of risk management into the organization’s key activities and functions. Its effectiveness depends on how well it is embedded within the organization’s governance structure, particularly in decision-making processes. Achieving this integration requires active support from stakeholders, especially top management.
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