ISO 31000 defines a structured process that includes setting scope and criteria, identifying risks, analyzing and evaluating them, and selecting treatment options, supported by communication and monitoring.
ISO 31000 describes risk management as a coordinated set of activities used to direct and control an organization with regard to risk. The risk management process provides a structured method for understanding uncertainty and its impact on objectives.The process begins with defining scope, context, and criteria. This step clarifies what objectives are in scope, what internal and external factors influence them, and how risk will be evaluated. Clear criteria make later assessments consistent and defensible.Risk identification follows, focusing on what could happen, why it might happen, and what the consequences could be. Identified risks are then analyzed to understand their nature and evaluated against criteria to determine priority.Risk treatment involves selecting and implementing options to address prioritized risks. Treatment decisions are supported by recording and reporting so actions and rationale are traceable.ISO 31000 also emphasizes communication and consultation, as well as monitoring and review. These activities ensure stakeholders understand risk decisions and that the process adapts as context changes.
The process only works when criteria are clear. Ambiguous criteria lead to inconsistent assessments and weak decisions.Recording and review turn risk management into a learning system rather than a one-time exercise.
“ISO 31000 treats risk management as a continuous process.”
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Recording and reporting create traceability for risk decisions and enable monitoring and review. They also support communication and consultation so stakeholders can act on consistent information.
ISO 31000 supports decision-making by providing a structured way to understand uncertainty, prioritize risks, and select treatment options based on defined criteria.
In ISO 31000 terms, the framework is how risk management is embedded, directed, and sustained in an organization. It defines leadership commitment, governance, and the conditions needed for the risk management process to work consistently.
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