If an organization applies risk management in its enterprise, it analyzes the risks that are known today and the risks that may occur in the future, evaluates the risks and predicts the extent of the damages it will cause to the company if these risks occur and tries to eliminate the effects of these risks or minimize their effects. Risk management means trying to prevent risks systematically before they become a hazard.

ISO 31000 Enterprise Risk Management Systemis a risk management standard that is used to establish the necessary infrastructure for companies to effectively manage risks that threaten their operations. Risks are not only dangerous. Some risks may also create opportunities for the firm. This system can provide benefits to the company by understanding the opportunities and challenges that are accompanied by the risks. But most importantly, it is the set of standards for controlling and neutralizing the negative effects of risks on the firm.

Enterprise Risk Management SystemThe basic principles of the EU can be summarized as follows:

  • To manage the risks of companies and to enable them to continue their activities without being harmed by these risks.
  • Making and implementing consistent and repeatable risk management plans for companies, not just one-off.
  • To create and maintain value for the company.
  • To give the company superiority over its competitors.
  • To ensure that risk management processes are a part of the company's daily business processes.
  • To be a part of the decision making system.
  • To avoid possible risk conflicts within the company.
  • To create awareness about risk management in employees.

In short, risks have two main characteristics. One of these features is the inability to achieve a specific goal or the likelihood of an undesirable event occurring. Another feature is the effects of the situations caused by the risk if the risk occurs.

Successful Enterprise Risk Management The system provides an acceptable assurance for the company to achieve its objectives through the principles described above. This is achieved through prior detection, evaluation and supervision of possible events or situations.

To get more information about the basic principles of ISO 31000 Enterprise Risk Management System and even to establish Enterprise Risk Management System in your company, you can contact the experienced managers and employees of TURCERT certification body.