The ISO 31000 framework provides a structured approach for managing risks, allowing organizations to address various challenges by:

i. Establishing a Risk Management Framework: Define the organization’s risk policy, objectives, and mandates, which act as guiding principles.

ii. Embedding Risk Management into Organizational Processes: Integrate risk management across all departments and levels, ensuring that decision-making at each level incorporates risk assessments.

iii. Risk Identification and Assessment: Utilize consistent processes to identify potential risks and evaluate their impact and likelihood.

iv. Risk Treatment and Controls: Implement strategies to mitigate, transfer, accept, or avoid risks as deemed suitable.

v. Monitoring and Reviewing Risks: Regularly assess the effectiveness of risk responses, updating controls as necessary to adapt to changing risk landscapes.

vi. Continual Improvement: Learn from risk events and improve processes to better handle future uncertainties.

i. Risk Identification: Recognizing potential events that could affect the achievement of objectives.

ii. Risk Analysis: Understanding the nature of risk and its characteristics, including the likelihood and consequences.

iii. Risk Evaluation: Determining risk levels and deciding on the necessity of further treatment or control based on organizational tolerance.