ISO-31000-CLA ISO 31000 - Certified Lead Risk Manager Questions and Answers

Treatment plan provides a roadmap on how the treatment options will be deployed3. Treatment plan helps to define the objectives, scope, responsibilities, resources, timeframe, and monitoring mechanisms for implementing risk treatment actions.

According to 1, ISO 31000 is a family of standards relating to risk management codified by the International Organization for Standardization (ISO). It provides principles and guidelines on managing risks that could affect organizations.

Human element is often the biggest challenge in risk implementation. Human element involves overcoming resistance to change, engaging stakeholders, building trust and commitment, and fostering a positive risk culture.

ISO 31000:2018 risk management process is descriptive6. This means that it provides guidance on what should be done for effective risk management, but not how it should be done. The process can be customized to any organization and its context.

according to page 15 of source 3, the development of a risk management strategy takes into account the organization's resources and internal support. These resources include factors such as human, capital, and technological resources; organizational structure, culture, and governance; communication and consultation mechanisms; and support from senior management and leadership. These inputs have an impact on the feasibility and effectiveness of the risk management strategy.

According to ISO31000 (2018), clause 5., establishing the context involves defining “the external and internal parameters to be taken into account when managing risk”. The internal context includes “information systems, information flows and decision-making processes” among other factors.

Treatment plan becomes a living document of defining the direction of the risk treatment and being able to monitor progress against the plan3. Treatment plan helps to ensure that risk treatment actions are aligned with the changing context, objectives, and stakeholder expectations.

Integrated and customized are two of the nine risk management principles in ISO 31000:20181. Integrated means that risk management is an integral part of all organizational activities. Customized means that risk management is aligned with the organization’s external and internal context and risk profile.

According to ISO 31000:2018, a risk management framework consists of four critical elements: design (B), implement (D), evaluate (E) and improve (F)5. These elements guide an organization in integrating risk management into all functions and processes.

 Enhanced risk management ensures that uncertainty is managed so the organization can meet its objectives4. Enhanced risk management involves applying a systematic and logical process to identify, analyze, evaluate, treat, monitor, review, and communicate risks.

A risk management professional advises management on the status of key risks by providing insights into the changing characteristics of a risk3. This helps to monitor and review the effectiveness of risk management activities and communicate any changes in risk levels or priorities.