Enhanced risk management emphasizes the continual improvement of risk management capabilities.

The statement is true. A core principle of the ISO 31000 standard is "Continual improvement." This principle mandates that an organization's risk management framework, processes, and overall capabilities should be dynamically improved through learning and experience. "Enhanced risk management" is the direct outcome of applying this principle. It signifies a mature approach where risk management evolves beyond a static process into a continuously refined capability that adds value and supports the achievement of organizational objectives. This iterative enhancement ensures that risk management remains relevant and effective in a changing environment.

B. False: This is incorrect because it contradicts the fundamental principle of "Continual improvement" as explicitly stated in Clause 4 of the ISO 31000:2018 standard.

1. ISO 31000:2018, Risk management — Guidelines, Clause 4, Principles. Principle (h) states: "Continual improvement. Risk management is continually improved through learning and experience." This directly supports the premise that enhancing capabilities is a core emphasis.

2. Purdy, G. (2010). ISO 31000:2009—Setting a new standard for risk management. Risk Analysis: An International Journal, 30(6), 881-886. In Section 3, "The Principles of Risk Management," the author discusses how the principle of continual improvement is essential for the framework's effectiveness, leading to enhanced organizational performance. (DOI: https://doi.org/10.1111/j.1539-6924.2010.01442.x)

3. University of Sydney. (n.d.). Risk Management Framework and Policy. In the section on "Risk Management Principles," the university's framework, based on ISO 31000, lists "Continual improvement" as a key principle, stating the University is committed to continually improving its risk management practices. This demonstrates the application of the principle to enhance capabilities.