Risk Management & ISO 31000

AM Foundational Thinking

This installment in the Foundational Thinking miniseries is a follow-on to last week’s introduction of the ISO 55000 asset management standards series. In this context, the identification and management of risk are inherent asset management functions. This is made clear in the following ISO 55001:2014 clauses:

• 5.1 – Leadership and Commitment, which states: “Top management shall demonstrate leadership and commitment with respect to the asset management system by… ensuring that the approach used for managing risk in asset management is aligned with the organization’s approach for managing risk.”

• 6.2.2 – Planning to Achieve Asset Management Objectives, which includes the statement: “The organization shall ensure that its asset management related risks are considered in the organization’s risk management approach including contingency planning.”

In ISO standards, requirements need only to be stated once, even ones as important as how risk is to be managed. When a requirement is stated, it be…