What It Is

ISO 31000:2018, Risk management — Guidelines is a non-certifiable international standard providing principles, framework, and process for managing uncertainty. Its primary purpose is systematic risk management to create and protect value, applicable to any organization, risk type, or level. It uses a principles-based, iterative approach defining risk as the effect of uncertainty on objectives.

Key Components

• **Eight principlesintegrated, structured, customized, inclusive, dynamic, best information, human factors, continual improvement.
• Framework (Clause 5): leadership commitment, integration, design, implementation, evaluation, improvement.
• Process (Clause 6): communication, scope/context/criteria, assessment, treatment, monitoring/review, recording/reporting. No fixed controls; flexible, PDCA-aligned model without certification.

Why Organizations Use It

Enhances decision-making, resilience, and value creation. Drives strategic benefits like better resource allocation, opportunity capture, stakeholder trust. Voluntary but aligns with regulations, reduces losses, boosts reputation in sectors like finance, healthcare.

Implementation Overview

Phased approach: leadership alignment, gap analysis, pilot process, integration, monitoring. Tailored for any size/industry; involves policy, training, tools like registers/dashboards. No audits required; internal assurance via reviews.

What It Is

ISO 19600:2014, Compliance management systems — Guidelines, is an international standard providing non-certifiable guidance for establishing, implementing, evaluating, maintaining, and improving a Compliance Management System (CMS). It uses a risk-based, principles-driven approach applicable to all organization types, emphasizing proportionality to size, structure, and complexity.

Key Components

• Follows high-level structure and PDCA cycle with 10 clauses: context, leadership, planning, support, operation, performance evaluation, improvement.
• Core principles: good governance, proportionality, transparency, sustainability.
• Covers obligations identification, risk assessment, controls, training, monitoring, audits.
• No fixed controls; scalable guidance, not certifiable (superseded by ISO 37301).

Why Organizations Use It

• Mitigates compliance risks, reduces penalties, enhances governance.
• Builds culture of accountability, integrates with other ISO systems.
• Demonstrates commitment to regulators, stakeholders; supports judicial penalty mitigation.
• Provides strategic benchmarking, efficiency gains.

Implementation Overview

• Phased: gap analysis, policy design, controls rollout, monitoring setup.
• Scalable for SMEs (6-12 months) to enterprises (12-36 months).
• Universal applicability; internal audits, no external certification.