ISO 31000 Enterprise Risk Management (ERM) Standards Increase Prominence
The International Standards Organization (ISO) 31000:2009 Standard is Gaining Acceptance.
Most United States organizations are using Committee of Sponsoring Organizations of the Treadway Commission (COSO), however around the rest of the world the ISO 31000 standard is gaining prominence. COSO defines risk as "the possibility that an event will occur and adversely affect the achievement of objectives." The standard emphasises the reduction of loss costs. The ISO standard defines risk as "the effect of uncertainty on objectives," which has a different approach to how risk affects the organization. We believe both are important in Enterprise Risk Management (ERM) organizational structures. For more information about the ISO framework from the Institute of Risk Management, please click the link below.