Risk management takes human and cultural factors into account.

The statement is correct. According to the ISO 31000:2018 standard, one of the fundamental principles of effective risk management is that it must take "Human and cultural factors" into account. The standard explicitly recognizes that human behavior, perceptions, and organizational culture significantly influence every aspect of the risk management process, from identifying risks to treating them. Failing to consider these factors can lead to an incomplete understanding of the risk landscape and ineffective risk management outcomes.

The option "False" is incorrect because it directly contradicts a core principle outlined in ISO 31000:2018. The standard is built on the premise that risk management is not merely a technical or mechanical process but is deeply intertwined with the people and culture of an organization. To suggest that risk management does not take these factors into account would be to ignore a foundational element of the internationally recognized guideline for risk management.

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

Clause 4: Principles

item (d) explicitly lists "Human and cultural factors" as a principle. The text states

"Human behaviour and culture significantly influence all aspects of risk management at all levels and stages."

2. Purdy

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

30(6)

881-886.

Page 884

Section 3.1 Principles for Managing Risk: The article discusses the principles that form the foundation of the standard

noting that they "provide guidance on the characteristics of effective and efficient risk management." It lists and explains the principles from the standard

including the necessity of considering human and cultural factors for risk management to be effective. DOI: https://doi.org/10.1111/j.1539-6924.2010.01442.x

3. Leitch

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

30(6)

887-892.

Page 889

Table I: This article presents a table summarizing the 11 principles of the original (2009) standard

which are carried forward into the 2018 version. Principle (g) is listed as "Human and cultural factors

" reinforcing its status as a foundational component of the ISO 31000 framework. DOI: https://doi.org/10.1111/j.1539-6924.2010.01441.x

4. University of Queensland. (n.d.). MINE4201 - Risk & Financial Management - Lecture 2: Risk Management Principles and Framework.

Course materials for this engineering program typically review the ISO 31000 standard. Lecture slides on the principles of risk management directly list the eight principles from ISO 31000:2018

including "Human and cultural factors

" and explain that these principles are the basis for managing risk effectively.