Overview

ISO 31073:2022, titled Risk Management - Vocabulary, is an international standard developed by the International Organization for Standardization (ISO) to provide a comprehensive and generic vocabulary related to risk management. Published in 2022, this document defines essential terms that help organizations globally adopt a common language and understanding of the concepts and processes involved in managing risks. By standardizing terminology, ISO 31073:2022 facilitates clearer communication and consistency across industries and sectors.

This vocabulary forms the foundation for risk management frameworks and processes, supporting practitioners, policymakers, and standards developers in effectively managing risk-related activities. It is designed for use in a broad range of organizational contexts, reflecting both threats and opportunities within risk management practices.

Key Topics

The standard categorizes and defines terms across three main areas related to risk and its management:

Terms Related to Risk
- Risk: Defined as the effect of uncertainty on objectives, encompassing both potential threats and opportunities.
- Objective: A result to be achieved, which can be strategic, tactical, or operational.
- Uncertainty: The deficiency of information related to knowledge or understanding, serving as the root of risk.
Terms Related to Risk Management
- Risk Management: Coordinated activities to direct and control an organization with regard to risk.
- Risk Management Policy: The overall intentions and direction related to risk management within an organization.
- Risk Management Plan: Specifies the approach, management components, and resources applied to managing risk for products, processes, or the organization.
Terms Related to the Risk Management Process
- Risk Management Process: Involves communication, consultation, establishing context, risk identification, analysis, evaluation, treatment, monitoring, and review.
- Risk Identification: Recognizing and describing risks, including their sources, causes, and potential consequences.
- Risk Assessment: The overall process combining identification, analysis, and evaluation.
- Risk Analysis: Understanding the nature and level of risk to support informed decisions.
- Risk Evaluation: Comparing risk analysis results against risk criteria to determine acceptability.
- Other critical terms: Likelihood, consequence, risk criteria, risk owner, opportunity, threat, vulnerability, exposure.

ISO 31073:2022 also emphasizes the importance of understanding both internal context (organizational policies, culture, capabilities) and external context (regulatory, social, economic environment) when applying risk management concepts.

Applications

ISO 31073:2022 serves as a vital resource for organizations seeking to embed robust risk management practices by using consistent terminology. Practical applications include:

Risk Management Implementation: Assisting managers and risk practitioners in developing and applying risk management frameworks and policies in alignment with established definitions.
Standard Development: Guiding national and sector-specific standards bodies to adopt harmonized risk terminology, ensuring consistency across related risk management documents.
Training and Awareness: Supporting educational programs and workshops by providing a uniform language enabling effective communication about risk concepts.
Cross-sector Risk Communication: Enabling different industries, such as finance, healthcare, manufacturing, and government, to share risk information and collaborate with shared understanding.
Improved Decision-Making: Helping organizations clearly identify and evaluate risks and opportunities, which leads to better strategies and outcomes.

Related Standards

ISO 31073:2022 works in synergy with other key standards in risk management such as:

ISO 31000:2018 - Risk Management - Guidelines: Provides comprehensive principles and best practices for designing and implementing risk management processes.
IEC 31010:2019 - Risk Management - Risk Assessment Techniques: Details techniques that support risk identification, analysis, and evaluation.
ISO Guide 73:2009 - Risk Management Vocabulary: Earlier guidance harmonized within ISO 31073:2022 to provide consistent terms.

Together, these standards form a complementary suite supporting organizations in establishing effective risk management systems and frameworks.

Keywords: ISO 31073:2022, risk management vocabulary, risk terms, risk management process, organizational risk, risk assessment, risk analysis, risk evaluation, risk management standard, ISO risk standards, risk terminology, risk policy, risk identification, risk management framework.

Overview

Key Topics

The standard categorizes and defines terms across three main areas related to risk and its management:

Terms Related to Risk
- Risk: Defined as the effect of uncertainty on objectives, encompassing both potential threats and opportunities.
- Objective: A result to be achieved, which can be strategic, tactical, or operational.
- Uncertainty: The deficiency of information related to knowledge or understanding, serving as the root of risk.
Terms Related to Risk Management
- Risk Management: Coordinated activities to direct and control an organization with regard to risk.
- Risk Management Policy: The overall intentions and direction related to risk management within an organization.
- Risk Management Plan: Specifies the approach, management components, and resources applied to managing risk for products, processes, or the organization.
Terms Related to the Risk Management Process
- Risk Management Process: Involves communication, consultation, establishing context, risk identification, analysis, evaluation, treatment, monitoring, and review.
- Risk Identification: Recognizing and describing risks, including their sources, causes, and potential consequences.
- Risk Assessment: The overall process combining identification, analysis, and evaluation.
- Risk Analysis: Understanding the nature and level of risk to support informed decisions.
- Risk Evaluation: Comparing risk analysis results against risk criteria to determine acceptability.
- Other critical terms: Likelihood, consequence, risk criteria, risk owner, opportunity, threat, vulnerability, exposure.

Applications

ISO 31073:2022 serves as a vital resource for organizations seeking to embed robust risk management practices by using consistent terminology. Practical applications include:

Risk Management Implementation: Assisting managers and risk practitioners in developing and applying risk management frameworks and policies in alignment with established definitions.
Standard Development: Guiding national and sector-specific standards bodies to adopt harmonized risk terminology, ensuring consistency across related risk management documents.
Training and Awareness: Supporting educational programs and workshops by providing a uniform language enabling effective communication about risk concepts.
Cross-sector Risk Communication: Enabling different industries, such as finance, healthcare, manufacturing, and government, to share risk information and collaborate with shared understanding.
Improved Decision-Making: Helping organizations clearly identify and evaluate risks and opportunities, which leads to better strategies and outcomes.

Related Standards

ISO 31073:2022 works in synergy with other key standards in risk management such as:

ISO 31000:2018 - Risk Management - Guidelines: Provides comprehensive principles and best practices for designing and implementing risk management processes.
IEC 31010:2019 - Risk Management - Risk Assessment Techniques: Details techniques that support risk identification, analysis, and evaluation.
ISO Guide 73:2009 - Risk Management Vocabulary: Earlier guidance harmonized within ISO 31073:2022 to provide consistent terms.

Together, these standards form a complementary suite supporting organizations in establishing effective risk management systems and frameworks.

ISO 31073:2022 PDF

Technical details

Abstract

Overview

Key Topics

Applications

Related Standards

Related standards

Abstract

Overview

Key Topics

Applications

Related Standards

Related standards

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