Risk management not only makes economic sense for companies, it’s also a legallybinding building block in corporate management. There is a complex legal framework in the UK when it comes to corporate risk and compliance management. Several standards have been developed worldwide to help businesses implement risk management efficiently. With this common idea of how processes should work, it helps to regulate the practice the world over.
The most important international standards include the risk management standard ISO 31000:2009, the quality management standard ISO 9001:2015, and the COSO Enterprise Risk Management Framework (COSO ERM 2017). The framework, also known as the COSO cube, categorises risk management according to components, target categories, and organisational units.
The guidelines set out in these standards are intended to help companies implement their own risk management and develop it further. Both the ISO and the COSO standards are regularly reviewed and, if necessary, adapted to reflect current developments in the corporate world.
In addition, the UK also has the “Risk Management Standard”, which was developed in 2002 by the UK’s three main risk organisations.