Importance Of Strong Risk Management Leadership

Managing risk effectively ensures businesses succeed and thrive in constant uncertainty. Good leadership has tremendous importance in the success of the ISO 31000 risk management system. ISO 31000 aims to simplify risk management into clearly understandable and actionable guidelines that should be straightforward to implement, regardless of a business’s size, nature, or location. However, without leadership, your risk management strategy is likely to fail. Here are a few key points that top management should pay close attention to for a successful ISO 31000 risk management system. 

ISO 31000 is not one-size-fits-all

ISO 31000 clearly states that risk management is an open-ended process designed to be highly customised and tailored to the organisation’s individual needs and contexts. That said, ISO 31000 advises particular attention to customising the risk profile, risk appetite, and the communication and facilitation of risk management throughout the company culture.

Executive alignment is crucial

This is one of the most important points; top management must be firmly committed to the risk management program, or the system will not work. Executives should ensure that the entire risk management process is integrated across all levels and departments of the organisation and is strongly aligned with company objectives, strategy, and culture.

Consider how risks will impact value

Top management should be responsible for ensuring that risks are prioritised per how they impact the organisation’s ability to create and deliver value. This approach differs from traditional risk management approaches, which typically rank the risks by numeric value, assigned by considering probability and estimated severity.

Proactive, not reactive

This one is self-explanatory. The basic idea is that risk management should be preemptive. Rather than simply reacting to the currently identifiable risks, it prepares for risks that haven’t yet arisen.

What about ISO 31000 certification?

ISO 31000 provides guidelines, not requirements, and is therefore not intended for certification purposes. It’s important to note that ISO 31000 is a set of guidelines, not requirements. Many ISO standards, like ISO 37001 ANTI-BRIBERY MANAGEMENT SYSTEMS and ISO 37301 Compliance Management Systems, are requirements, which means they compose a strict set of specifications that can be certified. ISO 31000 is not like that; it can’t be certified. It’s simply a set of best practice guidelines.

Powered by CRI® Group, ABAC® educates, equips and supports the world’s leading business organisations with the latest best-in-practice risk assessments, performance assessments, systems improvement and standards certification. Our ISO solutions (certification and training) are offered through our ABAC® Center of Excellence. Find out how ABAC® can help your business! 

Getting Started with ISO 31000 Risk Management?

ISO 31000 is an international standard issued in 2009 by ISO (International Organization for Standardization). All types and sizes of organisations face internal and external factors that directly impact whether an organisation can achieve their objectives or not. ISO 31000:2018 serves as a guide for the design, implementation and maintenance of risk management; ISO 31000:2018 describes a systematic and logical process during which organisations manage risk by identifying it, analysing it, and then determining as to mitigating the risk treatment in a way that is consistent with their risk appetite. An organisation can implement risk management across the entire company and can do so at any time. It can also tailor these controls to specific areas and activities in the business.

• Organisations can use it to compare their risk management practices with an internationally recognised benchmark, providing sound principles for effective management and corporate governance.
• It is a clear indicator to your customers and other stakeholders that, as an organisation, you are committed to managing risks in every part of your business.
• Increases public confidence in the organisation by demonstrating your management capabilities in protecting your business from internal and external threats.
• ISO 31000:2018 helps to provide guidance for internal or external audit programmers.
• Competitive bidding for commercial tenders will enhance your company’s reputation and give you a competitive advantage.

Our newly published “ISO 31000 Risk Management: A guide to identify, analyse and mitigate risk” playbook covers everything you need to know about ISO 31000:2018; here’s a quick rundown of the playbook structure:

• What is ISO 31000?
• Why is this Standard a good idea?
• What are the benefits for my business?
• Principles of ISO 31000:2018
• ISO 31000 framework
  • Why was it revised?
  • What are the main differences?
• Key Clauses of 31000:2018
• Who is the Standard?
• The process
• The link between 31000:20180 and other standards
• Importance of risk management leadership
• 31000:2018 and continuous improvement
• How do we get started?

Risk management is a full-time, ongoing endeavour for organisations in today’s business world, and it poses constant challenges. The first part of reducing risk is having a strategy and taking action. So DOWNLOAD your free playbook now!

Other risk management solutions

CRI® Group’s unique identity and vision evolved from our fundamental desire to support our clients and their candidates, thus creating the DueDiligence360™. We specialise in solutions regarding compliance, working as trusted partners to businesses and institutions across the globe. While CRI® may not offer the ABMS certification, we offer other services. Our experts work with energy, insight and care to ensure we provide a positive experience to everyone involved – clients, reference providers and candidates.

The DueDiligence360™ reports help organisations comply with anti-money laundering, anti-bribery, and anti-corruption regulations. This service also proves beneficial ahead of a merger, acquisition, or joint venture. It can be used for a third-party risk assessment, onboarding decision-making, and identifying beneficial ownership structures. Identifying key risk issues clearly and concisely helps enhance your knowledge and understanding of the customer, supplier, and third-party risk, helping you avoid those involved with financial crime.

Why not consider our background investigative solutions? 

Firms spend thousands, even millions, to brand their products and services – it only takes one bad hire to cause a loss of capital and reputation. Employee Background Checks can aid in reducing the risk of hiring an employee who does not live up to their supposed skill set and could cause irrevocable damage. It can cause a business to fail, especially if the employee holds malice toward the organisation. EmploySmart™ is CRI® Group’s solution to expose vulnerabilities and threats within your organisation. Much like the ISO certification, our EmploySmart™ is a risk management measure that can be used to significantly reduce business and financial crime, fraud and malpractice within your workplace.

Our solutions are also certified by the British Standard Institute BSI for the scope of BS 7858:2019 Screening of individuals working in a secure environment, Code of practice (the only BS 7858 certified background screening services provider in the UAE and across the Middle East); and BS 102000:2018 Code of practice for the provision of investigative services.

Another risk management solution to consider from CRI® is our Third-Party Risk Management solution (TPRM), also known as 3PRM™. In the wake of the global pandemic, the 3PRM-Certified™ was developed to aid organisations in accurately determining the legal compliance, financial viability, and integrity levels of external parties, vendors, and customers who seek to be affiliated with and represent the business.

The 3PRM-Certified™ program consists of gap analysis and investigative due diligence on the targeted parties. This highly thorough program reveals anti-corruption, compliance and risk management discrepancies associated with the international regulatory framework helping your business flourish at any scale. Find out more about CRI® Group’s Risk Management Solutions.

If you’re unsure what solution may be best for you and your business, how about connecting with one of our experts for a free consultation? Receive tailored advice from the top analysts and investigators across the globe.

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