General Guidelines And Rules On Risk Management - 1550 Words

ISO 31000:2009 explains the general guidelines and rules on risk management. These guidelines are used by associations, companies, organisations, private, communities, public and groups or individuals. Hence, ISO 31000:2009 does not limit to any particular industry. ISO 31000:2009 can be brought in application for the whole life span of an organization, and to a broad area of activities, which covers plans and strategies, decision making processes, specific functions, product and services etc. This principle covers any specific area which involves risk of any type, nature and the pros and cons related to a business. When ISO 31000:2009 explains and provide guidelines, it is not focused on promoting uniformity to bring up risk management†¦show more content†¦Be an integral part of the organisation Risk management procedure needs to be integrated with a company’s management frame structure and become an important part of its planning processes for both operational and strategic levels Supports decision making Risk management helps and strengthens deciaion makers to make valid choices, analyse priorities and choose the most suitable procedures. Clearly address uncertainty This becomes easy for companies to incorporate control measures and methods to increase the chances of gains in comparison to losses. To be systematic and calculative Risk management procedures should be uniform within a company to make sure the results are consistent, reliable and as desired. Should be based on firsthand information It is very important to keep in mind, all the available information which is associated with any activity and to be alert that there may be limitation to that information. It becomes necessary to understand the way, this information meets the risk management process. Operating environment An organisation’s risk management policies and procedures are required to include its risk profile including consideration to its internal and external operating environment. Consider human and cultural variances The risk management procedures must consider and value the support that people and culture have