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Integrity Standards
ISO 31000 Framework

ISO 31000:2018
Risk Management.

ISO 31000 provides universal principles and guidelines for risk management. Reliatic integrates this framework to provide enterprise-wide risk governance alongside technical standards like API 581 for asset-level calculations.

01. Framework Overview

ISO 31000 is not a certification standard but a guidance framework applicable to any organization managing risk. Unlike technical standards (API 581, ASME), ISO 31000 focuses on the organizational processes, governance, and decision-making structures that support effective risk management.

Integrated

Risk management is part of all organizational activities, not a standalone function.

Structured

Systematic and timely approach contributes to efficiency and consistent results.

Customized

Framework adapted to organization's external and internal context.

Core Components

  • Principles: Foundation for managing risk
  • Framework: Organizational arrangements for managing risk
  • Process: Systematic application of policies and procedures

02. Risk Management Process

The ISO 31000 process consists of iterative activities that should be integrated into organizational processes and decision-making.

1

Scope, Context, Criteria

Define the external and internal context of the organization. Establish risk criteria and define the scope of risk management activities.

Asset Integrity Example

For asset integrity: Define acceptable risk thresholds, consequence categories (financial, safety, environmental), and regulatory requirements.

2

Risk Identification

Find, recognize, and describe risks that might help or prevent achieving objectives.

Asset Integrity Example

Identify damage mechanisms (corrosion, fatigue, creep), operational hazards, and equipment failure modes using engineering analysis and historical data.

3

Risk Analysis

Comprehend the nature of risk and determine level of risk. Consider consequences and likelihood.

Asset Integrity Example

Calculate probability of failure (POF) and consequence of failure (COF) using API 581. Quantify risk using semi-quantitative or quantitative methods.

4

Risk Evaluation

Compare risk analysis results with risk criteria to determine if risk is acceptable or requires treatment.

Asset Integrity Example

Map assets to risk matrix. Prioritize high-risk equipment requiring immediate inspection or mitigation.

5

Risk Treatment

Select and implement options for addressing risk (avoid, reduce, share, accept).

Asset Integrity Example

Schedule inspections, implement corrosion mitigation, upgrade materials, or accept risk with documented justification.

Continuous Improvement

ISO 31000 emphasizes monitoring and review throughout the process. Reliatic tracks risk changes over time, validates risk model accuracy against actual failures, and continuously refines projections based on new data.

03. Integration with API 581

ISO 31000 provides the governance framework, while API 581 provides the technical calculation methodology. Reliatic bridges both standards to deliver comprehensive risk management.

ISO 31000

Enterprise Governance
  • Risk appetite definition
  • Decision-making authority
  • Stakeholder communication
  • Performance measurement

API 581

Technical Calculations
  • Probability of failure (POF)
  • Consequence of failure (COF)
  • Damage mechanism modeling
  • Inspection effectiveness
UNIFIED RISK OUTPUT
{
  "asset_id": "V-102",
  "api_581_risk": {
    "pof_category": 4,
    "cof_category": "D",
    "risk_score": 2400
  },
  "iso_31000_context": {
    "risk_appetite": "low",
    "treatment_required": true,
    "decision_authority": "integrity_manager",
    "review_frequency": "quarterly"
  }
}

04. Decision Context

ISO 31000 emphasizes establishing context before conducting risk assessment. Context defines the boundaries, objectives, and criteria used in risk evaluation.

External Context

  • Regulatory environment (EPA, OSHA, API)
  • Industry best practices and standards
  • Economic conditions and commodity prices
  • Stakeholder expectations (community, investors)

Internal Context

  • Organizational risk appetite and tolerance
  • Available resources (budget, personnel, time)
  • Operational constraints and production targets
  • Historical incident and failure data
Reliatic Implementation: During onboarding, we establish your organization's context through a structured questionnaire covering regulatory requirements, risk tolerance, consequence criteria, and operational constraints. This context informs all subsequent risk calculations.

05. Implementation in Reliatic

Reliatic operationalizes ISO 31000 principles through structured workflows and governance controls.

Risk Appetite Configuration

Define organizational risk tolerance levels and acceptance criteria for different asset categories and consequence types.

Multi-Level Review Workflows

Route high-risk decisions through appropriate approval chains based on risk magnitude and organizational authority.

Continuous Monitoring & Review

Risk re-calculation triggered by new inspection data, process changes, or operating condition modifications.

Audit Trail & Documentation

Complete record of risk assessments, treatment decisions, and approval chains for regulatory compliance and internal audits.

Stakeholder Communication

Customizable dashboards and reports for different audiences (executives, engineers, regulators) with appropriate detail levels.

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