MANAGEMENT

Detailed explanation-1: -Risk is now defined as the “effect of uncertainty on objectives”, which focuses on the effect of incomplete knowledge of events or circumstances on an organization’s decision making.

Detailed explanation-2: -As per ISO 31000, risk is “The effect of uncertainty on objectives” whereas risk management is “coordinated activities to direct and control and organization with regard to risk".

Detailed explanation-3: -According to ISO 31000, risk is the “effect of uncertainty on objectives” and an effect is a positive or negative deviation from what is expected.

Detailed explanation-4: -ISO 31000 aims to simplify risk management into a set of clearly understandable and actionable guidelines, that should be straightforward to implement, regardless of the size, nature, or location of a business. Risk for ISO 31000 is defined as “the effect of uncertainty” on business objectives.

Detailed explanation-5: -ISO 31000:2018 provides guidelines on managing risk faced by organizations. The application of these guidelines can be customized to any organization and its context. ISO 31000:2018 provides a common approach to managing any type of risk and is not industry or sector specific.