ISO 31000 Risk Management: Context, Identification, Assessment, Treatment, Monitoring, and Communication. Repeat for continuous improvement.
The ISO 31000 standard outlines a comprehensive risk management process designed to help organizations identify, assess, treat, monitor, and communicate risks in a systematic and effective manner.
Establish the Context: Define the scope, objectives, and external/internal factors relevant to the risk management process.
Risk Identification: Identify risks by considering events, sources, causes, and potential consequences.
Utilize various methods such as brainstorming, checklists, and analysis of historical data.
Risk Assessment: Evaluate the likelihood and impact of identified risks. Assess the overall risk using qualitative and quantitative methods.
Prioritize risks based on their significance.
Risk Treatment: Develop and implement risk treatment plans to mitigate, transfer, accept, or avoid identified risks.
Consider available resources and select appropriate risk treatment options.
Monitoring and Review: Continuously monitor and review the effectiveness of risk controls and treatment plans.
Update risk assessments as new information becomes available.
Communication and Consultation: Establish clear communication channels for sharing risk-related information.
Engage stakeholders and ensure transparency in the risk management process.
Documentation and Record Keeping: Maintain comprehensive documentation of the risk management process, including risk assessments, treatment plans, and monitoring activities.
Integration with Organizational Processes: Integrate risk management into the organization's governance, planning, performance management, and decision-making processes.
Continuous Improvement: Regularly review and improve the risk management framework.
Learn from experiences, incidents, and changes in the internal and external environment.
Question
What are the steps on risk management process as per ISO 31000?