Today, the biggest challenge of the business world is to maintain sustainable competitiveness. However, the ups and downs of the economy and the negative effects of the political and economic crises have seriously affected this competitiveness. It affects. Every organization has goals. However, the uncertainties experienced pose risks in reaching the targets of the organizations and organizations try to cope with these risks. Transformation of uncertainties into opportunities is a separate skill, and organizations are now focusing on risk management to gain this ability.
Because of the crises that are experienced not only locally but also globally, organizations have to manage their risks in a discipline and systematically in order to sustain and secure their assets.
International Standards Organization (ISO) for this purpose in 2009 ISO 31000 Enterprise Risk Management has published its standard. This standard sheds light on the risk management efforts of institutions and manage risk determines the necessary rules.
In addition to this standard, there are other standards that organizations use for risk management practices:
- ISO / IEC Guide 73: 2009 (this document provides definitions of general terms for risk management)
- ISO / IEC Guide 71: 2014 (this document explains the purpose of the documents on risk management)
- ISO / IEC 27005 Information Security Management System, Risk Management Standard
- ISO 31000: 2009 Risk Management, Terms, Application of Standards
institutions Risk Management System It provides information based on data, analyzes this information and chooses alternative risk management options in order to prevent or reduce the risks. As a result of these studies, the risks and the possible effects on the organization are revealed. Factors that give rise to or give rise to risk and weaker rings are identified. Information is given to the decision-making levels.
Once the risks are identified, they are put in priority for the company and a method for managing risk is determined. In some cases, it may not be possible to eliminate the risk altogether. In these cases, the acceptable limits of the risk are determined and a link is established between the risks and the uncertainties.
ISO 31000 Enterprise Risk Management System standardsIt is designed to accurately and effectively manage the risks to the activities of all public and private organizations, large or small. Risk management strategies to be established through these standards can be applied to manage any risk that the company may face.
ISO 31000 standardsenables a systematic assessment of the operational risks it carries out in order to provide an acceptable assurance for organizations to achieve their objectives. In this way, the effects of possible damages will be minimized. To be able to do this, the organization has to use, analyze and decide on all kinds of information.
It is important to understand that risks can sometimes create opportunities and to act in this direction. It may be possible to gain benefits from risks and avoid the negative effects of risks.
In order to create such an opportunity, consultancy services are often more appropriate when establishing the ISO 31000 Enterprise Risk Management System. The consultancy service providers take companies' organizational structure, objectives, processes, assets, products or services as a whole and examine the projects that will be carried out or will be initiated in the future. As a result, they can identify and evaluate opportunities and threats more quickly and determine strategies in return. This means improvement in the prevention of damages. Moreover, the flexibility of the company will be increased in the face of various challenges.
Thanks to the ISO 31000 Enterprise Risk Management System, various risks detected in different units within the company but with different results but somehow affecting each other will be managed consistently and optimally for the company.
The benefits of enterprise risk management to companies can be:
• Creating a sense of responsibility within the company
• To raise awareness on risk among employees
• Managing processes effectively
• Managing risks with a preventive approach
• Using resources effectively
• Spread the culture of openness and transparency in the company
• To provide competitive advantage to the company
• To increase the brand value of the company
As a result, the Enterprise Risk Management System can be established in a company with the ownership of senior management and participation of all employees. It starts with analysis studies and all processes are revised. All processes are re-arranged with a view to preventing risks and reacting quickly to potential risks. All the logic of the system is explained to the employees by means of what the risks are, how to manage them and how to turn them into opportunities.