How ISO Compliance Relates To Risk-Based Thinking
Energizes the Top Leadership Team
The ISO 9001:2015 standard requires businesses to take a risk-based thinking approach to quality management. Business leaders who abide by this standard take a greater strategic view of risk within their businesses. Given that top management teams are required to be involved in the process of identifying fully, recording, removing, and mitigating risks, using this risk-based thinking process has many benefits that far surpasses many processes such as preventive action in terms of effectiveness.
Helps Evaluate and Benchmark Risk Management
Organizations that are ISO certified are keenly focused on identifying and managing risk. They continuously develop a variety of risk management systems that assess risks at all levels of their business. These standards ensure that employees at lower levels have a channel through which they can feed their opinions upwards for consideration by the top management team. This enables the top leadership team to hold strategic information about threats to their business.
In place of a one-dimensional preventive strategy that was carried out solely at a lower level and remained there, ISO 310000 ensures this risk-based thinking process are presided over by the top leadership team who are privileged to have information from several sources. By leveraging established benchmarks such as ISO 31000, businesses can proactively evaluate their overall risk readiness at all times. And with the decisions made by the help of this new system and the consequential actions, it is relatively easy to notice that the documented actions and goals will be more useful for preventing risks than those from systems such as the preventive actions.
Enhances Understanding of the Culture of Businesses
ISO standards require business owners to know what they intend to achieve by understanding their risks, threats, and vulnerabilities. As part of this process, they minimize interruptions to activities that generate sales, reduce delivery times to customers, and provide better customer service. Other than understanding their organization, business leaders have to know the culture of their businesses since these standards recognize culture as essential building blocks in creating successful risk management initiatives.
Conclusion
By identifying standards that support risk management such as ISO 31000 and NIST SP 800-30, businesses leaders are able to demonstrate the commitment to building a risk-focused organization. The best way organizations can mitigate potential risks is investing their time and resources to stay current with risk management developments and ISO compliance. The ISO particularly envisions ISO 9000, ISO 14000, and other ISO standards as a tool for risk management accreditation, which differs from ISO 3100. This strategy is meant to give risk managers the flexibility to implement these standards in ways that really meet the needs of their organizations.
If you are looking to implement a risk-management strategy at your company, contact Ledge today for a customized strategy.