International Standard Emphasizes Importance of Risk Management in
NEW YORK (June 5, 2018) – RIMS , the risk management society ™, welcomes recent updates to ISO 31000:2018, one of the most widely-used guidance documents addressing risk management. RIMS members collaborated and delivered feedback to the ISO through its membership in ANSI’s US Technical Advisory Group (US TAG) to help shape the current iteration of ISO 31000:2018. The Society has published the following article about the revisions to the ISO standard, as well as changes to the COSO ERM Framework: “A User’s Perspective on Revisions to the ISO 31000 Standard and the COSO Enterprise Risk Management (ERM) Framework.”
A few of the most notable revisions to ISO 31000:2018 include:
· Simplifying language and avoiding jargon to aid user understanding;
· Emphasizing the need to customize the proposed guidance to suit the organization’s established risk management principles, processes and frameworks;
· Stressing the importance of integrating risk management into governance and decision-making processes;
· Incorporating risk management into strategic, operational, program and project levels objectives to create as well as protect value.
“The revised ISO: 31000:2018 reflects the evolution of risk management over the past decade from a separate, at times, departmentalized, activity to an integrated management competency,” said RIMS Vice President of Strategic Initiatives Carol Fox. “The international standard emphasizes risk management’s ability to positively impact day-to-day activities, as well as strategic decision-making throughout the organization’s value chain. RIMS proudly supports these updates and looks forward to continuing its collaborative relationship with ISO standards development and ANSI’s US TAGs.”
With the publication of the revised standard in February, national standards bodies are now considering whether to adopt ISO 31000 as their national risk management standard. As a member of the US TAG, RIMS supports US adoption of ISO 31000:2018 as an American risk management standard. As a global society, RIMS encourages countries around the world to adopt the ISO 31000:2018 as their respective risk management national standard.
“Risk management professionals will find that the revisions in the ISO 31000 standard and the 2017 COSO ERM Framework complement each other,” according to Carol Fox. “We encourage organizations to use both of these important guidance documents, along with the RIMS Risk Maturity Model®, to advance their risk management competencies.”
RIMS Risk Management Magazine article about the revised ISO 31000:2018 and COSO Enterprise Risk Management Framework is available at www.rmmagazine.com and in RIMS is Risk Knowledge Library www.RIMS.org/RiskKnowledge . For knowledge, tools and resources that support risk professionals’ strategic and enterprise risk management efforts, visit RIMS Strategic and Enterprise Risk Center at www.RIMS.org/resources/erm .