Factocert https://factocert.com We Know Standards Wed, 28 Oct 2020 07:05:24 +0000 en-US hourly 1 https://wordpress.org/?v=5.5.3 https://factocert.com/wp-content/uploads/2020/10/cropped-fav-factocer-icont-32x32-1.png Factocert https://factocert.com 32 32 How to Get ISO Certification? https://factocert.com/blog/iso/how-to-get-iso-certification/?utm_source=rss&utm_medium=rss&utm_campaign=how-to-get-iso-certification https://factocert.com/blog/iso/how-to-get-iso-certification/#respond Tue, 15 Sep 2020 19:21:34 +0000 https://factocert.com/2020/?p=579 ISO publishes the International standards, and there are about 22000 + of standards throughout the globe. Depending upon the scope of an individual organization, it can choose the suitable International standard, which will be having specific requirements. If the organization is not aware of a rule to determine, one of the best options is to …

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ISO publishes the International standards, and there are about 22000 + of standards throughout the globe.

Depending upon the scope of an individual organization, it can choose the suitable International standard, which will be having specific requirements.

If the organization is not aware of a rule to determine, one of the best options is to go to the consulting organization where their main aim is to provide the best solution for the problems which the organizations are facing by making the process as simple as possible.

We the consulting company, Factocert’s main motto is to gain customer satisfaction and improve the process.

The ISO certification certifies a management system, services, manufacturing process, or procedures for documentation purpose, which consists of all the requirements of quality assurance and standardization.

These ISO certifications are issued to the organization to ensure the safety, quality, and efficiency of services, systems, and products.

So when the organization decides to opt for an ISO certification has to go through some following procedures.

Most of the companies choose for 9001 certifications which are considered to be the basis for most of the ISO standards. And the cost for each International standard differs because each one describes specific requirements and not only that it also depends upon the size of the company.

Before getting certified firstly, the organization has to develop and document all the business procedures.
The following steps that have to be followed by an organization to get ISO to get certification with the help of consulting bodies

Management System has to develop

  • The business process or the core of the business has to be identified.
  • Employees should be involved in the documentation process
  • The access for the information those who need have to be reviewed and approved.

System should implement

  • According to the documentation procedures the work has to be performed
  •  Depending upon the type of task, the employees should be trained and should make sure that they are performing well.
  • Reports should be created to cover the fields like testing, inspection, preventive actions, corrective actions, management review meetings, statistical techniques, monitoring of objectives.
  • Using the measurable data, the effectiveness of the process has to monitor.
  • The necessary actions have to be taken to improve the area which is affected.

Verifying that system is effective

  • The audit and the review process has to be conducted to check the effectiveness.
  •  Based on strength and weakness, the management system has to identify and document.
  • Corrective and preventive actions have to take.

Registering your system

  • As discussed earlier, the Consulting body has to be chosen by the organization so that they can consult you on how to overcome all these procedures and get you certified.
  • The documentation related to the management system has to be submitted for the verification process to make sure that it meets all the requirements of the International standard.
  • After conducting all this process it has to be audited by an external auditor so that the preparation has to be done by the organization to confirm the requirements according to the standard so that the auditor would be satisfied by the implementation process as the management system is active.

Once you overcome all these procedures, you can be certified by the reputed certification bodies by submitting all the reports related to management, process, systems, and audit. These documents would be verified, and finally, the organization would be certified.

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ISO 9001 vs. ISO 27001 https://factocert.com/blog/iso/iso-9001-vs-iso-27001/?utm_source=rss&utm_medium=rss&utm_campaign=iso-9001-vs-iso-27001 https://factocert.com/blog/iso/iso-9001-vs-iso-27001/#respond Tue, 15 Sep 2020 19:20:21 +0000 https://factocert.com/2020/?p=576 ISO is an acronym for an international organization for standardization which established in the year 1947 and the headquarters in Geneva, Switzerland. The main aim of ISO is to publish the standards, and it defines the norms and rules to overcome the risks for all the products that people use. Not only that also includes …

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ISO is an acronym for an international organization for standardization which established in the year 1947 and the headquarters in Geneva, Switzerland.

The main aim of ISO is to publish the standards, and it defines the norms and rules to overcome the risks for all the products that people use.

Not only that also includes provisions how product manufactured, but quality also has to test, and how the information security.

Depending upon the process and scope of the organization, ISO has published more than 22000 + of standards throughout the globe.

Among which ISO 9001 is one of the first and generic standards which can apply to all the organization which is looking for customer satisfaction and the process improvement.
And another standard ISO 27001 specifies the requirement for an information security management system it provides a Framework for procedures and policies which include all the physical, legal and technical controls involved in the organization’s information management processes.

Let us know more about ISO 9001 & ISO 27001

Every organization works to meet a customer and legal requirements, so it is becoming more common to the organizations to maintain and obtain the multiple ISO certifications.
One of the great combinations of the certification which has gained more popularity is ISO 9001, quality management system, and ISO 27001, information security management system.

As discussed earlier ISO 9001 is a quality management system which specifies the requirement for an industry or organization to demonstrate its capability to provide the entire product and services consistently to meet the regulatory and customer needs.

If the organization has achieved an ISO 9001 certification, it means there is a successful demonstration of the process which involves the product or service of the operation, customer focus, development and design of services and products, infrastructure, input and output designs, and how the process managed externally.

Now coming to ISO 27001, it is an International standard which focuses on the useful information security management system of the organization by implementing the standard.
If the organization certified by ISO 27001 standard, it means the organizations can manage the information security risks by implementing the standard along with other supporting standard ISO 27002.
ISO 9001 and ISO 27001 are two different International standards which specify different requirements, but few factors shared between these two standards, which includes:

  • Scope
  • Leadership
  • Support For Human Resources
  • Document Management
  • Internal Audit
  • Monitoring And Measurement
  • Review Of The Management
  • Continual Improvement

And the differences we can find between these two standards are listed below:

ISO 9001 – The main objective of ISO 9001, quality management system is to maintain all the expected quality standards in the industry or an organization, and it does not require SOA (statement of applicability).

ISO 27001 – The main objective of the information security management system is to garments for implementing, establishing, maintaining, and continuously improving the information security risks. Along with this that utilizes the controls to support the information security management system from the standard ISO 27002.

Both standards have different requirements and are very helpful and useful when they implemented for the organization.

So if your organization choosing for both the rules, they would be benefited from a quality point of view and also on the information security point of view.

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What is ISO certification and accreditation? https://factocert.com/blog/iso/what-is-iso-certification-and-accreditation/?utm_source=rss&utm_medium=rss&utm_campaign=what-is-iso-certification-and-accreditation https://factocert.com/blog/iso/what-is-iso-certification-and-accreditation/#respond Tue, 15 Sep 2020 19:19:11 +0000 https://factocert.com/2020/?p=572 ISO is an international standard-setting body which comprises of representatives of standard organizations from various Nations. The headquarters of ISO is in Geneva, Switzerland and it was established in the year 1947, Feb 23. ISO is an independent, Non- profitable and Non-governmental organization which is involved in publishing the standards and it is not engaged …

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ISO is an international standard-setting body which comprises of representatives of standard organizations from various Nations. The headquarters of ISO is in Geneva, Switzerland and it was established in the year 1947, Feb 23.

ISO is an independent, Non- profitable and Non-governmental organization which is involved in publishing the standards and it is not engaged in issuing the certification. It has published more than 22000 + of rules and it has 164 member countries working for it.

And each standard describes a specific requirement based on the organization’s scope.

There are Certification bodies to issue the certification for different standards which has been published by ISO. ISO certification and ISO accreditation are two different things.

But both are a formal process of implementing the standard which involves a procedure for describing, evaluating, authorizing and testing the activities or systems which are essential to the operation.

Coming to the definitions of certification and accreditation, certification is a comprehensive evaluation of system, process, products and skills which are estimated against some specific standards or norms.

And it is considered to be an approval of seal from external bodies to make sure that the companies are meeting the specific International standard requirements.

This ISO certification can be used as a proof for the company’s credibility and helps to build confidence.

Certification bodies which are been accredited can perform only certain functions of assessments or an audit and it should not get involved in setting up the certification process the way which the other certification bodies does which are not accredited.

And about the accreditation part, it is a kind of license given to the certification bodies to perform the audits and to issue the certificates.

In other words, accreditation can be defined as a process of assessments or evaluation of organizations or entities against the specific requirements to make sure their excellence or competency.

Due to this reason many certification bodies are getting accredited and so the companies are getting certified. There should be only one accreditation body for each country and it can operate several certification bodies.

If the certifications institutions are not accredited, it does not mean they are not reputable, as it’s a choice not an obligation of the individual certification bodies. And above the Accreditation bodies comes a forum called as IAF, where only own accreditation bodies would be a member.

IAF is an association of conformity assessment accreditation bodies and other interested bodies in the field of management systems,services, products and any other programs related to conformity assessment (Conformity assessment defined as the certification bodies or the registration bodies, accredited from IAF members that issues the certificates which attest the organization’s products, management or personnel to meet with specific standard requirements).

The main aim of IAF is to develop a program worldwide for conformity assessment which will help to promote the businesses by reducing the risk and gives an assurance to the customers that the accredited certificates to be relied upon around the world.

So to be more productive and reputable, it is necessary to be a member of IAF.

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What is the ISO Certification? https://factocert.com/blog/iso/what-is-the-iso-certification/?utm_source=rss&utm_medium=rss&utm_campaign=what-is-the-iso-certification https://factocert.com/blog/iso/what-is-the-iso-certification/#respond Tue, 15 Sep 2020 19:18:13 +0000 https://factocert.com/2020/?p=567 On the contrary, we can say that there are different types of International standards published by an organization called ISO. If someone says ISO certification, it is a generic term to considered and for an organization to get the specific ISO standard to implement in its management system. There are many international certificates which are …

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On the contrary, we can say that there are different types of International standards published by an organization called ISO. If someone says ISO certification, it is a generic term to considered and for an organization to get the specific ISO standard to implement in its management system.

There are many international certificates which are widely recognized by people across the globe, one such good example is ISO 9001 standard and also ISO 14001 standard.

Along with these two international standards, ISO 27001 standard, ISO 22000 standard and many other. The organization to get certification for any of this particular ISO standard concerning implementation, there are many Consulting bodies.

Consultation body such as Factocert act as a bridge between the certification body and the organization get certified with required ISO certification.
Let’s learn about the new terms that we just came across that is certification body and consultation body.

The hierarchy of getting an iso certification for an organization goes like this. Scaling it down, at the very bottom of the regime, there lies the organization above that which certification body exists.

The objective of this certification bodies is to provide the particular certificate concerning the requirements of the organization. Above the certification body, we will find an accreditation body having the goals to accredited certification body to provide the certification to the organizations.

At the very top of this hierarchy, we see a forum which is called as International accreditation forum, short for IAF. This forum formed by each member bodies of the countries where the ISO is considered to be a valid action. There can only be a one-member body associated with ISO from each state.

Let us know what exactly ISO means! ISO is an abbreviation for International Organisation for Standardization. A group of dedicates from different countries sat together and found this organization on the 23rd of February 1947.

It is a Nongovernmental and nonprofitable organization publishing International standards to assist organization across the world to have a global trade and international data exchange.

International certificates are revised by ISO on time to time to provide the updated solutions for the organizations. When the organization undergoes certification for the required ISO standard, it is called ISO 9001:2015 certified organization.

The sole purpose of this organization is to publish an International standard based on every business aspect across the globe. Here states that ISO can not certify an organization, but it can be by a certification body with the help of a consultant body.

Once a consultant helps the organization to address the criteria and put them in places, the auditor from the certification body will conduct the final audit and prepare a final report on review.

If there is no existence of major conformance, the certification body will issue the certificate to the organization concerning a specific standard as per the requirement. Entire where all the organizations involved to provide certificate organization, it called as the process of getting ISO certification.

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How to obtain CE Mark Certification ? https://factocert.com/blog/iso/how-to-obtain-ce-mark-certification/?utm_source=rss&utm_medium=rss&utm_campaign=how-to-obtain-ce-mark-certification https://factocert.com/blog/iso/how-to-obtain-ce-mark-certification/#respond Tue, 15 Sep 2020 19:17:07 +0000 https://factocert.com/2020/?p=561 CE marking is an approval factor that is provided on the products to meet the conformity by the European Union. If any product is affixed with CE mark, it means that the product has reached the requirements of European Union health and safety. To get the legal authority for your product inside the European countries, …

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CE marking is an approval factor that is provided on the products to meet the conformity by the European Union. If any product is affixed with CE mark, it means that the product has reached the requirements of European Union health and safety.

To get the legal authority for your product inside the European countries, CE marking is made mandatory.

This confirms that the product has achieved the minimum legal requirements which are published by authorized derivatives set by the EU nations.

  • Let’s consider what the benefits that system can Unleash are is the product has been certified with CE marking.

Advantages of getting CE Mark for the product company.

  • CE Mark stands as a passport for the product which has to get into European market place. The company will have a legal right over the products to get the distribution in and around the European countries.
  • By following the conformity that are derived by the European Union.
  • The institution will have a standard way of processing the procedures. We provide the best CE Mark consultants.
  • The concern on the quality of the product can be fully eliminated.
  • The product which is having CE marking on them can delivered worldwide.
  • The product company should go for CE marking which are having the CE mark derivatives.
  • Conformity like Medical devices, construction materials, cable wire, weighing machines, measuring unit devices and many more.

Why to go with CE Mark/Use of CE Mark ?

The CE marking affixing on the product ensure the distribution inside the European Union, which consists of 30 countries in total.

The measures taken to meet the requirements of CE mark will show the customer, the strong commitment towards product safety.

  • The company can easily have the way of building the brand name for the company just by having the worldwide distribution of the product.

This can be easily achieved by getting the CE Mark on the product and meeting all the derivative requirements. Just drop an email to us on contact@factocert.com

What is product certification?

The products are certified by the CE mark according to their needs might be harmful to the end-users and also the company.

To avoid all those claims and damages, one has to go with product certification, which will meet all the legal requirements. The product which wants to get marketed in the European Economic Area has to be certified by the CE mark.

Interesting facts about CE.

CE mark is an global standard which is compiled at different levels.

It provides a guarantee for the conformity of the product to the regulations of the European Union.

If the products are CE certified, then consumers would trust that your products are safe, healthy and nature friendly to use.

By getting certified to CE mark, following are the points to be noted:

  • Technical files related product has to be kept by the company or any other authorities once the product has been released in the market.

The Logo usage should be done according to the European Union rules.

Just by getting certified by the CE mark cannot act as proof of compliance but the technical file for the file does.

CE Mark Logo usage

After conducting an enormous test and passing that successfully, the company or an importer has to affix the CE mark logo on their product. And the logo must be legible and visible on the products or even the packages. This marking and the declaration of conformity together proves that product meets the entire requirement according to the CE directives. Know more about CE Mark cost at www.factocert.com

Product labeling rules

  • The letter CE on the product should be visible and noticeable.
  • It should be of size specified by the European Union

If it is not possible to affix the CE mark logo on the product due to the design and size. it can be placed on the package along with the technical file.

The logo should be durable in such a way that, it can face or resist any external harm.

How Factocert can be the best option for you ?

Factocert is a leading and recognized global company which includes Consulting of ISO certification of global standards and third-party audit services.

We always aim to provide customer satisfaction and put 100% efforts to offer the best solutions for your company.

And we have well- versed expertise who have subject knowledge both technical and legal. Our experts would help your company for Quality Assurance, product design, product safety, and other use of facilities. So, when it comes to ISO or any Global standards, Factocert is the best for you.

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What is ISO 9001 certification? https://factocert.com/blog/iso/what-is-iso-9001-certification/?utm_source=rss&utm_medium=rss&utm_campaign=what-is-iso-9001-certification https://factocert.com/blog/iso/what-is-iso-9001-certification/#respond Tue, 15 Sep 2020 18:50:37 +0000 https://factocert.com/2020/?p=541 ISO 9001 certification is all about the requirement for any company to establish a streamlined quality management system(QMS) which enhance the company process. QMS, as defined, and to be followed by the company to achieve the result. This achieved by implementing all the needs of the standard and do not depend on the size and …

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ISO 9001 certification is all about the requirement for any company to establish a streamlined quality management system(QMS) which enhance the company process.
QMS, as defined, and to be followed by the company to achieve the result. This achieved by implementing all the needs of the standard and do not depend on the size and nature of business.
Not only meeting the customer needs or even making the continual improvement will fulfil standard needs. Alongside meeting the needs of statutory is also in implementing ISO 9001 standard by any company.
The ISO 9001 standard is considered supreme of all ISO standards. It is always better for a company to start with implementing a QMS that is to achieve any ISO standard. QMS is one of the most prominent rules which is a family of ISO 9001.

Implementing this standard by any company leads to a pavement of fulfilling any other measure. It is the most important to implement a QMS, which needs to be the culture of a company.

In this article, we are keen on understanding the structure and the benefits of implementing the QMS. ISO 9001 consultant is helpful.
The rule is very much accepted of its benefits for a company to improve business and marketing.

Standards always focus on improving the process, which directly enhances the business bottom line.
It gives stability in providing the consistent delivery of products and services. It is achieved by implementing the QMS by any company carrying any range of business activity.

Hereafter discussing the basics of QMS now, we will get complete insight about the QMS standard requirement. For this, we need to understand the points of ISO 9001 standard as described in the high-level structures.

Clauses of ISO 9001 standard:

1. Scope: This clause of the rule defines the boundaries with which the QMS can be adopted within the company. It is essential to consider the extent even before the implementation of the standard.
It is always highly suggested to define all the external and internal parameters that are affecting the company.
This is why many companies fail to succeed in implementing the ISO 9001 standard successfully in the company. It is essential to define the scope of the QMS.

2. Normative references: As discussed earlier in the above context, the ISO 9001 standard belongs to the family of ISO 9000.
While implementing the 9001 or looking towards the rule or its requirements, one might come across many terms, definitions, etc.

QMS cost is worth the investment in many ways, many requirements of the ISO 9001 standard have been misrepresented by the signal of the team in a company point of view, this is because management as a whole does not understand a few technical terms.

All the definitions of the rules stated as a part of the requirement of the QMS.
Does it is a good practice to consider and know the terms and definitions used in the measure as a Proactive exercise? This will improve the performance of the QMS adopted by the company.

3. Terms & Definitions: ISO 9001 standard consists of many words and definitions all across the standards while stating the requirements.
Which can be done by using the terms or even the definition which is not stated the standard requirement.
So this does not become a mandatory part of the QMS Practice.

The same terms and definitions given in the standard can be used, or even alternative different names can be used by the company. The document essential the right time and description can be used as to comfort at all levels of the company. The standard states that the terms and description are not mandatory used as it is in the standard.

All the above three points explained adjust the non-audit able provisions of ISO 9001 standard. You can visit www.factocert.com for further detailed information. 7 more terms are audit-able and in turn, which is very important from the putting o affect point of view.

But it is tough to explain and elaborate all provisions in terms of simple words. Explaining each phrase in the same article could be very difficult, and it might be misrepresented
by the audience in some or the other way. It is not only about the clauses when it comes to the QMS.
There are many types of technique but not only defects to implement the quality management system effectively. We shall discuss the other aspect of the ISO 9001 in this article to have a clear idea about the complete usage cycle of the ISO 9001 standard.

Why ISO 9001 is the most prominent?

As discussed earlier, the two main pillars of the ISO 9001 standard customer satisfaction (CS )and continual improvement (CI). Any company can be sustained in the market only when the delivery of the products and the services meet the demands of their customers. To achieve complete CS, the company should develop the capacity to deliver the solutions accordingly at the right time.

This is possible only if the company is performing its activity is in a streamlined manner. This can be achieved by setting up a step of useful procedure which goes as the day by day activities without any defects.
But the setting up a particular set of requirements which are well defined by the ISO 9001 standard. Thus by implementing the ISO 9001 standard and its needs, the company can contain a defined path to conduct its day to day activity effective.
This will ensure a company to meet the continuous demand and needs of the customer, thus achieving CS. Achieving the certification of QMS will provide the company is performing as planned and the set of requirement as defined in the Quality Standard ISO 9001. This is for Any company can sustain in the market by ensuring the improvement and customer satisfaction.

Benefits of ISO 9001:

ISO 9001 Provides a framework to establish a robust QMS. Helps in achieving customer satisfaction. Provides a competitive edge in the market globally. Compatible to integrate with other management system standards.

Monitoring and measuring of the process, as well as results, are very much effective by implementing the QMS. The holding of both customers and employees is ensured. Production and efficiency of the process are increased more excellently. Consistency of delivering the output is achieved, resulting in less wastage.

Excellently motivates employees to achieve the intended task on time with enhanced efficiency. Helps in bidding for and winning the tender by a public or private sector.

The internal management of the process is streamlined, which increase effectiveness.
Helps senior management to adopt a defined path of quality in every stage of business activity. Promotes improvement of a company. Helps in reducing the time and cost in achieving the desired result.

Assists in defining and setting the roles and to the types of designation in a company. Helps in improving the connection among the employees and also senior management.
These are some of the benefits of implanting and certifying to ISO 9001 standard requirement.
Companies across the globe have witnessed drastic improvement in their business by achieving ISO 9001 certification.

If you wish to go for ISO 9001 certification, the very next option for you is contacting a prominent consulting company. You can directly give a call to Factocert or mail at contact@factocert.com to get your company certified.

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Risk Management – An essential factor for success https://factocert.com/blog/iso/risk-management-an-essential-factor-for-success/?utm_source=rss&utm_medium=rss&utm_campaign=risk-management-an-essential-factor-for-success https://factocert.com/blog/iso/risk-management-an-essential-factor-for-success/#respond Tue, 15 Sep 2020 18:29:36 +0000 https://factocert.com/2020/?p=509 When planning for budget, resource, project infrastructure and many more aspects in an organization, it was a significant factor of consideration to also plan for Risk Management. Here will always ensure that there is no decline in the growth rate of the company by any chance. It is neglected considering that risk management is a …

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When planning for budget, resource, project infrastructure and many more aspects in an organization, it was a significant factor of consideration to also plan for Risk Management. Here will always ensure that there is no decline in the growth rate of the company by any chance. It is neglected considering that risk management is a mere support function. But it is the time to be e well educated enough to know that risk management is the base and fundamental process for success. Without planning for risk management, it is challenging to taste success. Any plan or Project initiation should always have a risk management process to start. Here the safest way to achieve the highest possible level without any decline in the growth rate. Because without knowing the factor affecting the risk, it is very much possible to face severe loss and it will hinder the growth drastically.

Importance and significance of Risk Management:

Risk management is nothing but a proactive measure to anticipate any risk associated with the business and also to develop a mitigation plan for the same. Risk management is a proactive measure. It is very much necessary that waste management initiated as a start for any process. Break considering the risk associated with any business process. It is beneficial to stop the threats.

According to ISO, Risks into three categories:

Hazard

Control

Opportunity

Hazard risks: This is a type of uncertainty in which the consequences are always negative. It needs to be adequately addressed and mitigated to the plan, if not, which will lead to a severe impact. Reducing the risk is very easy by identifying the particular hazard and applying the controls as required. Most of the time, following a disciplined structure itself, will be reduced or help in eliminating the hazard risk. These hazards might be a physical risk like hazardous chemical leakage, fire accident, fall from height and many more. This hazard risks can be eliminated or controlled by adequately applying the required control. A straightforward example of applying power is by only using the personal protective equipment which will safeguard the person working in the premise.

Control risks: We have already discussed in this article that any project started or initiated by an organization should be a risk management procedure. If at all, a project is associated with the risk management procedure, it is nothing but a control risk. Most of the time, these control risks are very much uncertain. Because after applying the control over the threat, the outcome of the same is unpredictable. But it is always suggestible and necessary to implement proper authority for the risk identified.

Opportunity risks: These types of threats are beneficial for the growth of the organization if appropriately addressed. The opportunity risk is nothing but a chance taken by the management and authority to witness a positive outcome at the end. It may lead to positive on even negative outcomes sometimes. It all depends on analyzing the risk at the best possible level. It is always necessary for an organization to consider this kind of threat to explore the opportunities and make the best out of it. But an expert or consultant with a piece of broader knowledge in identifying, analyzing & addressing the risk for opportunity would be beneficial. Opportunity risks cannot be avoided awarded because avoiding the same would cause even more adverse effects. Thus, it should be clearly understood that exploring the opportunity risk will always lead to a success factor.

Steps in Risk management:

  1. Establish a framework; the first step of Risk management is nothing but waste identification. But to identify risks, there is a need to define and establish a complete framework for the activities performed by the company. Here involves study and research of the market and also understanding the needs and expectations of interested parties of an organization. Creating a context like this will help in identifying and addressing the risk, and this is the effective way to do it.
  2. Risk identification: It is one of the most crucial steps in the risk management process. Risk identification is the fundamental aspect of risk management. Because in disc left and identified will lead to the use of a loss to the organization. It requires domain knowledge, experience, legal obligations, an environment of the working premise, financial structure of the management, requirements, and needs of the interested parties, learning about business activities and many more. Thus the task of risk identification should be performed only by an expert. After completing the risk identification, it should be categorized into its types to define the mitigation plan. Different methods of risk identification are described according to the categorization of the risks.
  3. Risk assessment: Risk assessment is carried out to find out the potential level and also the probability of occurrence of the particular risk. It is a quite difficult task to perform the risk assessment is because; finding out the potential level of risk and also the probability of a current depends upon the number of factors and parameters. But sometimes, it is difficult to define the measurement metrics and also the settings for a particular risk. But even the risk assessment process should be adequately carried out to obtain the maximum benefit of risk management.
  4. Risk treatment: Risk treatment is the task that is going to mitigate and eliminate the loss according to the company because of the particular risk. So, it is a crucial step in the process of risk management. Risk transfer, Risk avoidance, Risk control, Risk-retention are the basic techniques of risk treatment. According to the potential level of a particular risk, the above methods can be applied to treat the risk.
  5. Plan, implementation, and evaluation: The plan for risk management shall be drafted. The waste management process executed will, according to the program, to achieve the desired result. Finally, the entire process is evaluated, and further decisions are made based upon the performance and the result of the risk management.

These are the steps of the risk management process in brief.

Business is always uncertain, and there is still a need for risk management procedures in any organization to achieve success. The company has a risk management procedure that will produce consistent and efficient results.

Risk Management System in Brief from ISO Prospective: 

Risk management is a unique concept in ISO’s management system standards, where it says that organizations have to identify potential threats. Whether internal or external, related to products or services and analyze threats, categorize them according to their probability of occurrence and business impact and prioritize those risks which have to be in an appropriate plan. In simple words, Risks refer to anything which can stop an organization from achieving its desired objectives.

To be more understandable and straightforward, let us understand the term Risk management system by breaking the sentence into two:

Risk: – Any possible situation which can cause exposure to danger. Risk is a potential factor for uncontrolled loss of something which has a value

Management System: – Management system is a set of policies, business processes, and procedures intended to achieve business objectives

From the above, we understand that a Risk management system means as an organization, one should use the management system approach to deeply identify all the potential threats/hazards posing against their business and manage it systematically.

Salient Features and Benefits of Risk Management System:

  • Risk Management System is a unique concept which has used in Six Sigma and Failure Mode and Effect Analysis
  • Brings out a systematic approach to address the potential threats and hazards related to the organizations
  • Helps to determine the current risk exposure and analyze previous examples to treat the present risks
  • Helps the stakeholders to develop consistent plans for mitigation of possible threats
  • Supports to convert the identified risks into metrics and organizations can prioritize, create awareness and define accountability and action plans. 
  • Helps to determine monitoring procedures and severity
  • If the organization implements the Risk Management System appropriately, then the preventive action scheme becomes a routine.
  • A proper Risk management procedure helps an organization to determine residual risks.

Risk-based thinking: 

Risk-based thinking is a management system approach that helps an organization to become proactive instead of being reactive in undesired situations. This management system tools also helps the organizations to reduce unwanted consequences and take the direction of continual improvement.

  • Risk-based thinking is a common practice we all often do directly or indirectly
  • The concept was described in more details in ISO 9001 and was mandatory to follow in organizations
  • Risk-based thinking helps to identify opportunities, which means if an organization defines its potential threats and treats them with appropriate control measures, then a break is waiting for them to explore the benefits.
  • This methodology helps the organizations to achieve customer confidence and enhance their satisfaction
  • It has that the organizations which have adapted Risk-based thinking methodology have seen a drastic improvement and cost reductions.
  • This management system tool has encouraged organizations to develop pro-activeness among their employees
  • Risk-based thinking, once implemented, becomes an integral part of the organization.

How can organizations adapt to Risk-based thinking?

  • The first step in the process of implementing Risk-based thinking in an organization is to identify risks and opportunities associated with the context of the organization.
  • A risk register has to prepare where the organization has to record all the identified risks in detail.
  • ISO 31000 standard guidelines can be referred for useful inputs to implement a Risk-based thinking approach.
  • No ISO management system standard will specifically ask an organization to carry out a full-fledged risk assessment or to prepare a risk register but demands the practice of having this methodology as part of management.
  • After identifying the risks and associated threats, the organization has to analyze and set priorities on the levels of acceptance and non-acceptance
  • Once after the level of priorities are set, the organizations have to develop plans to address the identified risks, here addressing means the organizations have to formulate strategies to avoid or eliminate the threats with respective mitigation plans.
  • Then the organization has to implement the control measures or mitigation plans accordingly and assign responsibilities and accountability
  • The organizations have to check the efficiency and effectiveness of the implemented control measures, do the necessary changes if any for getting better results.
  • Organizations should follow continual improvement strategies by learning from their experiences.

How to prepare a risk register: 

As there is no standard format provided by any ISO management system standard for making a risk register, various organizations and industry experts use their developed forms. The risk register can be in a simple spreadsheet.

The contents widely used in a risk register are as follows:

Date: The risk register once prepared will become a live document in the organization’s processes. Hence it is required to input dates, the years to mention are the initial period when the risk register prepared, revision date and amendment dates.

A narration of the Risk: This is just a brief description of the nature of Risk

Type of Risk: Here, the organization has to classify the Risk-based on the project, department, and process, location, internal or external and on statutory or legal related issues.

Frequency of occurrence: Here, the organization has to recall the trend as per their previous experience and state how frequently the Risk may occur according to the context. The likelihood should be categorized high, medium and low. 

Impact: Here, the organization has to mention the areas which will get affected if the Risk occurs. Here describes the severity of the effects; this can be in a metric form where the organization can multiply the likelihood/frequency of occurrence and determine the risk score.

Mitigation Plan: Here the control measure has to be mentioned, the mitigation plan is nothing but a solution to control the Risk, an appropriate precautionary measures which have to be designed to tackle the Risk and its associated threats.

Responsibility: He the organization when planning the mitigations or control measures, has to assign the responsibility and accountability to the department/process owners.

Residual Risk: some risks still exist even after applying appropriate control measures, but the degree of risks can reduce. The organization has to be selective when deciding on residual risks with a proper approach to mitigate the same.

The golden principle of Risk Management System is “The organization has to either eliminate the risks or reduce the risk or transfer the risk”. 

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