ISO uses the concept of uncertainty as the driver and rationale for risk management.

The statement is correct. The ISO 31000:2018 standard is fundamentally built upon the concept of uncertainty. It explicitly defines risk as the "effect of uncertainty on objectives." This definition places uncertainty at the very core of risk, making it the primary driver and rationale for implementing a risk management framework. The entire purpose of the risk management process, as outlined in the standard, is to identify, analyze, evaluate, and treat the potential positive or negative deviations (effects) from what is expected, which arise from a state of incomplete knowledge or information (uncertainty).

The alternative, "False," is incorrect because it contradicts the foundational definition provided in Clause 3.1 of the ISO 31000:2018 standard. To claim that uncertainty is not the driver would be to ignore the explicit linkage the standard makes between "risk" and "uncertainty." While concepts like threats, hazards, or opportunities are inputs to the risk management process, they are all considered within the context of the uncertainty surrounding their potential impact on the organization's objectives.

1. International Organization for Standardization (ISO). (2018). ISO 31000:2018 Risk management — Guidelines.

Clause 3.1

Terms and definitions: Defines risk as the "effect of uncertainty on objectives."

Note 2 to entry 3.1: Clarifies that "Uncertainty is the state

even partial

of deficiency of information related to

understanding or knowledge of

an event

its consequence

or likelihood." This directly establishes uncertainty as the basis for risk.

2. Leitch

M. (2010). ISO 31000:2009—The new international standard on risk management. Risk Analysis: An International Journal

30(6)

887-892.

Page 888: "The definition of risk as 'the effect of uncertainty on objectives' is arguably the most important sentence in the whole of ISO 31000. It is a clear statement that risk is not an object

but a consequence. It is also a clear statement that risk is related to uncertainty." This academic review emphasizes that the entire standard's philosophy is driven by this definition. (Note: While this refers to the 2009 version

the core definition and its centrality were maintained in the 2018 revision).

DOI: https://doi.org/10.1111/j.1539-6924.2010.01426.x

3. Purdy

G. (2010). ISO 31000:2009—Setting a new standard for risk management. Risk Analysis: An International Journal

30(6)

881-886.

Page 882: The author discusses the significance of the definition

stating

"The definition of risk as the 'effect of uncertainty on objectives' is a significant element of the standard... It moves the focus of risk management away from the 'risk' itself and toward the reasons why organizations should manage risk—to achieve their objectives." This highlights that managing the effects of uncertainty is the core rationale.

DOI: https://doi.org/10.1111/j.1539-6924.2010.01442.x