ISO 31000 Risk Management Framework

ISO 31000: Risk Management Framework

Risk Assessment

• Identifies potential risks that may impact the organization
• Involves identifying risk sources, events, and their consequences
• Considers likelihood, impact, and velocity of risks
• Outputs: risk register or risk inventory

Risk Analysis

• Examines and interprets the results of risk assessment
• Quantifies and prioritizes risks based on their likelihood and impact
• Identifies risk causes, consequences, and potential risk scenarios
• Outputs: risk analysis report

Risk Evaluation

• Compares the results of risk analysis with risk criteria to determine risk significance
• Determines whether risks are acceptable or require treatment
• Identifies risk priorities and focuses on high-priority risks
• Outputs: risk evaluation report

Risk Treatment

• Selects and implements risk treatment options to mitigate, transfer, avoid, or accept risks
• Involves developing and implementing risk mitigation plans and strategies
• Monitors and reviews the effectiveness of risk treatment options
• Outputs: risk treatment plan

Risk Review

• Monitors and reviews the risk management process to ensure its effectiveness
• Updates the risk register and risk analysis based on new information or changes
• Identifies lessons learned and opportunities for improvement
• Outputs: risk review report

ISO 31000: Risk Management Framework

Risk Assessment

• Identifies potential risks that may impact the organization, including their sources, events, and consequences
• Considers likelihood, impact, and velocity of risks to determine their potential effect
• Outputs include a comprehensive risk register or risk inventory that documents all identified risks

Risk Analysis

• Examines and interprets the results of risk assessment to understand risk causes, consequences, and potential scenarios
• Quantifies and prioritizes risks based on their likelihood and impact to focus on the most critical risks
• Outputs include a risk analysis report that provides a detailed understanding of the identified risks

Risk Evaluation

• Compares the results of risk analysis with risk criteria to determine risk significance and identify acceptable or unacceptable risks
• Determines risk priorities and focuses on high-priority risks that require immediate attention
• Outputs include a risk evaluation report that outlines the risk significance and priorities

Risk Treatment

• Selects and implements risk treatment options to mitigate, transfer, avoid, or accept risks, based on the risk evaluation
• Develops and implements risk mitigation plans and strategies to reduce risk exposure
• Monitors and reviews the effectiveness of risk treatment options to ensure they are working as intended
• Outputs include a risk treatment plan that outlines the treatment strategies and approaches

Risk Review

• Monitors and reviews the risk management process to ensure its effectiveness and identify areas for improvement
• Updates the risk register and risk analysis based on new information, changes, or lessons learned
• Identifies opportunities for improvement and implements changes to the risk management process
• Outputs include a risk review report that summarizes the review findings and recommendations