Risk: Guidance

Why standards help improve risk management effectiveness Standards can improve the effectiveness of risk management by providing generic guidelines and drawing attention to the key principles and activities required. This happens in two ways The content of ISO 31000 forms a checklist against which an organization can assess the completeness of its own approaches in terms of both principles and activities. This leads to fewer organizations missing vital activities that national (or international) consensus deems necessary for the effective management of risk. Effective management relies on good communications and these, in turn, rely on the use of a consistent vocabulary. By standardizing the use of words in a particular context, people are able to work together more easily and with fewer misunderstandings. ISO Guide 73:20093 provides a risk management vocabulary.