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

Learn about the risk management framework outlined in ISO 31000, including risk assessment, risk analysis, and risk evaluation. Understand the processes involved in identifying, prioritizing, and mitigating potential risks.