Risk management is tailored.

The statement is correct. "Tailored" is one of the eight fundamental principles of effective risk management as defined in the ISO 31000:2018 standard. This principle mandates that an organization's risk management framework and its associated processes must be customized and proportionate to its specific external and internal context. A generic, one-size-fits-all approach is considered ineffective because every organization has unique objectives, culture, structure, operations, and resources, which directly influence its risks and how they should be managed.

The "False" option is incorrect because it directly contradicts the explicit guidance provided in ISO 31000:2018. The standard is built on the premise that for risk management to create and protect value, it must be integrated into the organization's specific governance and decision-making processes, which requires customization and tailoring.

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

Section 4

Principles

item (d): This section explicitly lists "Tailored" as a key principle. The standard states

"The risk management framework and process are customized and proportionate to the organization’s external and internal context related to its objectives." This directly supports the answer.

2. Purdy

G. (2010). ISO 31000:2009—Setting a New Standard for Risk Management. Risk Analysis

30(6)

881-886.

Page 883: The author discusses the principles of ISO 31000

highlighting that the framework must be "customized to the organization’s needs." The article explains that this tailoring ensures that risk management is relevant and effective within the specific operational environment of the organization. DOI: https://doi.org/10.1111/j.1539-6924.2010.01442.x

3. Leitch

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

30(6)

887-892.

Page 889: This academic review emphasizes the importance of the principles in ISO 31000. It notes that the principle of tailoring risk management to the "specific context of the organization" is crucial for its successful implementation and for ensuring that it supports the achievement of objectives rather than becoming a bureaucratic exercise. DOI: https://doi.org/10.1111/j.1539-6924.2010.01441.x