MANAGEMENT

Detailed explanation-1: -The ISO 31000 Risk Management framework is an international standard that provides businesses with guidelines and principles for risk management from the International Organization for Standardization.

Detailed explanation-2: -The ISO 31000 Framework is modeled after the Plan, Do, Check, Act (PDCA) cycle, which is used to create all management systems. “This Framework is not designed to prescribe a management system, but rather to help the business integrate risk management into its overall management system, ” according to the ISO.

Detailed explanation-3: -For ISO 31000, you are advised to follow three key steps in delivering your risk management plan: implement, evaluate, improve. The cyclical nature of clauses 5.4 – 5.6 are reflective of ‘Plan Do Check Act’, seen in several forms within the Higher Annex SL framework.

Detailed explanation-4: -In the first stage of the ISO 31000 risk management process, organizations should establish the context of the risk assessment as it relates to both internal and external factors. The most important deliverable from this stage is establishing the objectives and scope of the risk assessment.