How to ensure effective risk management as per the ISO 31000 directives?

There is no wonder that perils are inevitable in every endeavor. However, dealing with those risks prudently and deftly is part of governance and leadership in every organization, and is a core criterion as to how an organization is managed at all levels. The way an organization strives to mitigate or eliminate the element of risk; that may be natural or manmade; determines its scope for quality management.  

In this regard, the International Organization for Standardisation (ISO) has laid down explicit guidelines for all organizations as regards efficient risk management, under the benchmark ISO 31000. Very recently, ISO has launched the updated version of this ISO certification in February 2018, the ISO 31000:2018.

#1. How is ISO 31000:2018 linked to ISO 9001: 2015 certification?

Here it's worth mentioning that the efficiency of quality management is determined by its capability of risk management.

As quoted by Neil Armstrong,

“There can be no great accomplishment without risk.”

No big name in the domain of quality efficiency has been ever established without overcoming risks in various stages of process management. Tracing possibilities of threat automatically helps in devising effectual strategies in ruling them out completely. And that’s how enhanced productivity is yielded at every stage, something which is actually the sole objective behind the ISO certification 9001.

#2. What are main principles of risk management as under ISO 31000:2018?

As per the latest guidelines of ISO 31000:2018, risk management is a comprehensive practice that needs to be executed in a well-organized and integrated way based on the type of risks.

#3. How can this approach be implemented?

For this, an organization first needs to detect the probable risks during early stages of production and identify the factors behind them, that may be human, natural or cultural. Thereafter it needs to adopt a customized approach, and devise a dynamic strategy for mitigation of those risks and ensuring continual enhancement of  QMS process.

#4. How can the leadership play its role in effective risk management?

The top level management can play its part in tackling the risks through following aspects:

Proactive approach: Its very essential to act as a wise manager and conducting in a Proactive rather than reactive manner. Acting in a responsive way instead of indulging in blame game actually provides powerful guidance to the executives and subordinates to play their role more effectively.

Involving all-embracing participation: Though roles of every department in an organization are separately defined, in case of an encounter with a risk, all of them ought to assume the responsibility to tackle and eliminate it. All the executives must take a proactive stance on mitigating the risk and ensuring integrated risk management. This will help in effective decision-making across all levels of the organization.

Flexibility: It must be born in mind that risk management is not a rigid concept. The domain of quality management is quite extensive and diversified, so is the realm of risk management. Just as to implement the essence of ISO 9001 certification, the business has to cater to demands of a diverse clientele, there are different strategies for different types of risks, and there’s no straitjacket solution for tackling all the risks. The organization needs to adopt a customized approach for better risk management.

These are a few takeaways for effective risk management in an organization.

If you seek any sort of assistance related to the ISO certification process, feel free to contact our business advisor at 8881-069-069.

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