Treatment plan becomes a living document of defining the direction of the risk treatment and being able to monitor progress against the plan.

The statement is correct. According to the ISO 31000:2018 standard, the risk management process is dynamic and iterative. A risk treatment plan is not a static document created once and then archived. It specifies the actions, responsibilities, and resources for modifying risk. The "Monitoring and Review" phase of the process continuously tracks progress against the plan and assesses the effectiveness of treatment actions. As the internal or external context changes, or as new information becomes available, the plan must be updated. This continuous cycle of implementation, monitoring, review, and adaptation makes the treatment plan a "living document."

B. False: This is incorrect. Treating the plan as a static document would contradict the core ISO 31000 principles of continual improvement and responsiveness to change, rendering the risk management process ineffective.

1. ISO 31000:2018, Risk management — Guidelines, Clause 6.6, "Monitoring and review". This clause states, "The purpose of monitoring and review is to assure and improve the quality and effectiveness of risk management process design, implementation and outcomes... Progress in implementing risk treatment plans provides a performance measure." This establishes the plan as the basis for ongoing monitoring.

2. ISO 31000:2018, Risk management — Guidelines, Clause 5, "Framework". This section details the importance of "continual improvement" of the risk management framework, which inherently applies to all its components, including the outputs of the process like risk treatment plans.

3. Purdy, G. (2010). ISO 31000:2009—Setting a New Standard for Risk Management. Risk Analysis: An International Journal, 30(6), 881-886. Section 4, "The Risk Management Process," discusses the iterative nature of the process, stating, "The process is iterative, with feedback loops throughout." This supports the concept of plans being living documents that are revisited and revised. (DOI: https://doi.org/10.1111/j.1539-6924.2010.01442.x)