ISO 31000 principles for risk management: Why and what it means for you

Rather than prescribing rigid procedures, the ISO 31000 risk standard emphasizes integrating risk thinking into all organizational activities -- from governance to daily operations -- while balancing the protection and creation of value.  
 
The principles cover integration, structure, customization, inclusivity, dynamic adaptation, information quality, human factors, and continual improvement, ultimately transforming uncertainty into competitive advantage. 

 
Inclus ‘Fireside Talk’ webinar discussion on Oct 29, 2025 

In the recent Inclus webinar ISO 31000 Principles for Risk Management: Why and What It Means for You, risk management expert Mark Boult and Inclus CEO Miki Langinvainio discussed how ISO 31000 provides a strong foundation for organizations aiming to strengthen their approach to risk.  

Rather than prescribing strict steps, ISO 31000 is built on eight guiding principles that help organizations of all sizes and sectors create and protect value. These principles highlight the importance of balancing opportunity and threat while fostering a culture of continuous improvement and sound decision-making. 
 
View the webinar recording here.

Here’s a closer look at each of the eight principles, with key takeaways from Mark’s and Miki’s fireside talk. 

Integrated 

Risk management should be an inseparable part of everything an organization does. It is not a separate activity or a compliance exercise, but something that runs through governance, strategy, operations, and daily decision-making. When risk management is integrated into processes such as project planning, safety systems, and strategic objectives, it supports better and more consistent choices at every level of the organization. 

Structured and Comprehensive 

An effective risk management process is both structured and comprehensive. This means it follows a clear and logical framework that ensures consistency, avoids blind spots, and allows for a complete understanding of the organization’s risk landscape. Mark highlighted that a structured approach helps leaders make better decisions because they have a consistent and transparent view of the risks and opportunities affecting their goals. 

Customized 

Every organization operates in a unique context, and therefore its risk management framework should reflect that reality. The standard encourages organizations to tailor their processes to fit their size, resources, culture, and strategy. A customized approach ensures that risk management is relevant and practical. It also encourages discussions about topics such as risk appetite and the types of impacts—financial, reputational, or strategic—that matter most. 

Inclusive 

Good risk management brings together diverse perspectives. Inclusivity in this context means involving the right people across departments, hierarchies, and cultures so that risks are viewed from multiple angles. Inclus has embraced this principle both in philosophy and in practice by creating tools that make collaboration easy, multilingual, and transparent. This approach reduces bias and supports a more complete understanding of risks across the organization. 

Dynamic 

The world is changing faster than ever, and risk management must evolve with it. Being dynamic means regularly revisiting assessments, monitoring emerging trends, and being ready to adapt as new risks and opportunities arise. It requires organizations to move from static risk registers to living systems that reflect change in real time and encourage forward-looking thinking. 

Best Available Information 

Sound decision-making depends on using the best information available at any given time. This includes reliable, timely, and relevant data, while also acknowledging the presence of uncertainty. During the webinar, Mark and Mikaeli discussed how artificial intelligence and data analytics can help identify key risk indicators, track changes, and bring external intelligence into the process. Even when data is incomplete, recognizing its limitations is an essential part of responsible risk management. 

Human and Cultural Factors 

People and culture shape how risk management works in practice. Human behavior, communication styles, and cultural norms all affect how risks are identified, discussed, and managed. Mark noted that these differences can be significant in international organizations, where attitudes toward reporting, hierarchy, and openness may vary. Inclus tools take these factors into account by supporting collaboration across languages and cultures and by promoting open dialogue among participants. 

Continual Improvement 

Risk management is never complete. The final principle focuses on learning from experience and improving continuously. Organizations should evaluate what is working well and what can be enhanced, both in their frameworks and in how they handle specific risks. New technologies, feedback from teams, and evolving contexts all provide opportunities to refine processes and strengthen the overall system of risk management. 

Moving toward maturity and value creation 

Each of the eight principles contributes to a more mature and resilient organization. Whether a company is just beginning to formalize its approach to risk or is already operating at an advanced level, these principles provide a framework for ongoing progress. They help leadership teams understand where they stand today and where to focus their efforts next — whether that means integrating risk thinking into strategy, strengthening collaboration across functions, or enhancing the use of data and technology. 

As Mark reminded the audience, the goal of risk management is not only to protect value but also to create it by supporting informed decisions, enabling agility, and building trust across the organization. When risk management becomes an integral part of how an organization thinks and acts, it turns uncertainty into opportunity and resilience into a competitive advantage.