How does ISO 31000:2018 categorize risk management?

ISO 31000:2018 categorizes risk management as consisting of a comprehensive framework, principles, and a series of interrelated processes. This standard provides a structured approach to managing risk that is applicable to any organization and can be integrated into its existing governance, management, and planning processes.

The framework aspect encompasses the organizational context in which risk is assessed and managed, ensuring that risk management activities align with the organization's objectives. The principles guide organizations in implementing effective risk management practices that create value and promote resilience. Additionally, the processes involve a systematic approach to identifying, assessing, managing, and communicating risks, thereby ensuring that risk management is an ongoing, integral part of the organizational culture.

This holistic view of risk management is crucial; it allows organizations to address not just specific financial risks or temporary mindsets, but to create a lasting culture of risk awareness and proactive risk management that applies across various domains and situations.