ISO 31000 Lead Risk Manager

ISO 31000 is a suite of standards pertaining to the risk management domain, designed and codified by International Organization of Standardization. ISO 31000 aims to freeze and standardize risk management policies and processes across organizations, industries, subject matters and regions by providing a universally recognized paradigm.

ISO 31000 - Risk Management allows organizations to manage risks effectively and perform well in an adverse scenario or uncertain environment. ISO 31000:2018 provides risk management guidelines, principles, framework and processes for every organization regardless of its size, activity and sector. These guidelines help organizations to achieve their objectives, identify threats and effectively utilize resources for risk treatment.

Risk management is important because it:

• Enables organizations define their objectives for the future
• Saves valuable resources such as time, income, assets, people and property
• Reduces legal liabilities
• Increases the stability of tasks and operations
• Reduces the possibility of litigation

AS/NZS ISO 31000:2009 is the latest suite of principles and guidelines which is required to be considered by Fund Member agencies while designing risk management frameworks and programs.

ISO 31000 Risk Manager is a training and certification course offered by PECB (Professional Evaluation and Certification Board) that enables candidates to gain a thorough understanding of the fundamental principles, framework and processes associated with risk management based on ISO 31000. The certification course provides the ability to effectively apply Risk Management best practices in an organization so as to successfully execute a Risk Management process.

A risk manager warns and advices an organization about any potential risk that may affect the profitability or rather the existence of the company, employees, customers, assets and stakeholders. They also have the responsibility to assess, avoid, reduce and transfer risks.

The average salary of a Risk Manager is $83,820 per year, as per a survey conducted by PayScale. The salary increases with increase in experience.

A Risk Manager:

• Identifies potential risks
• Recommends or implements preventive measures
• Creates effective plans to minimize costs and damage
• Reviews the purchase of insurance programs
• Monitors claims and activities related to loss control
• Conducts audits for compliance of standards
• Prepares loss analysis reports and budget
• Spreads awareness and provides training to team members

The skills required for effective risk management include:

• Analytical skills
• Numerical skills
• Planning and organizational skills
• Communication and presentation skills
• Knowledge of business issues
• Decision making ability
• Negotiation skills