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ISOwl’s risk management module is aligned with two complementary international standards: ISO 31000:2018 for general risk management principles and ISO 27005:2022 for information security-specific risk management.

ISO 31000:2018 — Risk management

ISO 31000:2018 provides universal principles and guidelines for risk management. Unlike ISO 27001, it is not a certifiable standard — it is a framework that any type and size of organisation can adapt.

Core principles

ISO 31000 defines eleven principles for effective risk management. The most relevant to ISOwl’s implementation are:
PrincipleDescription
IntegratedRisk management is embedded in all activities, not treated as a separate function
Structured and comprehensiveA consistent, structured approach produces comparable and reliable results
CustomizedThe framework and process are tailored to the organisation’s context
InclusiveStakeholder involvement ensures that knowledge and perspectives are considered
DynamicRisk management anticipates, detects, and responds to change
Best available informationDecisions are based on historical data, expert judgement, and stakeholder input
Continually improvingOrganisations improve their risk management maturity over time

The risk management process

ISO 31000 defines a five-step risk management process:
StepISO 31000 activityISOwl implementation
Scope, context, criteriaDefine risk criteria and scoring scales1–5 likelihood and impact scales
Risk identificationIdentify threats, vulnerabilities, and assetsAsset + threat + vulnerability fields in the risk form
Risk analysisCalculate inherent riskinherentRisk = likelihood × impact
Risk evaluationClassify risk severity5×5 heat map with colour-coded zones
Risk treatmentSelect and apply treatment optionMitigate, Accept, Transfer, or Avoid
Monitoring and reviewTrack residual risk after treatmentresidualRisk = residualLikelihood × residualImpact

Treatment options

ISO 31000 defines four standard risk treatment strategies. ISOwl surfaces all four as selectable options in the risk registration form:
TreatmentISO 31000 termDescription
MitigateRisk modificationReduce likelihood or impact through controls
AcceptRisk retentionAcknowledge the risk and take no action
TransferRisk sharingShift the risk to a third party (insurance, outsourcing)
AvoidRisk avoidanceEliminate the activity that causes the risk

ISO 27005:2022 — Information security risk management

ISO/IEC 27005:2022 provides guidance specifically for managing information security risks in alignment with ISO 27001. It elaborates on the risk management process from ISO 31000 with information security-specific detail.

Key concepts from ISO 27005

ConceptDescriptionISOwl field
AssetSomething of value to the organisationassetId / assetName
ThreatPotential cause of an unwanted incidentthreat
VulnerabilityWeakness that could be exploited by a threatvulnerability
LikelihoodProbability that a risk event will occurlikelihood (1–5)
ImpactConsequence of a risk event occurringimpact (1–5)
Inherent riskRisk level before controls are appliedinherentRisk = likelihood × impact
Residual riskRemaining risk after treatmentresidualRisk = residualLikelihood × residualImpact
Risk treatmentAction to modify risktreatment (Mitigate, Accept, Transfer, Avoid)

Clause 6 integration

ISO 27001 Clause 6.1 requires organisations to define a risk assessment process and risk treatment plan. ISOwl’s risk module is embedded directly within Clause 6 of the Clauses 4–10 module. Risks added from Clause 6 and from the standalone Risk Management page share the same data source.

ISOwl’s risk scoring model

ISOwl uses a 5×5 risk matrix consistent with the quantitative approach described in ISO 27005.

Scoring scale

ScoreLikelihoodImpact
1Very unlikelyNegligible
2UnlikelyMinor
3PossibleModerate
4LikelySignificant
5Very likelySevere

Heat map zones

Risk scores (likelihood × impact) are mapped to severity zones on the heat map:
Score rangeColourSeverityRecommended action
1–4GreenLowMonitor — no immediate action required
5–9YellowMediumReview treatment strategy
10–14OrangeHighPrioritise treatment — assign responsible owner
15–25RedCriticalImmediate action required

Inherent vs. residual risk

ISOwl captures risk at two points:
  1. Inherent risk — the raw risk level before any controls or treatment are applied. Calculated as likelihood × impact.
  2. Residual risk — the remaining risk after the treatment strategy and any mitigating controls are in place. Calculated as residualLikelihood × residualImpact.
The heat map plots residual risk positions, giving you a realistic picture of your current exposure after controls are accounted for.
When the residual risk score remains in the orange or red zone after treatment, revisit the mitigation control. Either the control is insufficient, or the residual scores need to be reassessed against actual control effectiveness.

ISO 19011:2018

Guidelines for auditing management systems. ISOwl’s internal audit module is aligned with ISO 19011 audit principles, including audit planning, conducting, and reporting.

ISO 27001

The ISMS specification standard. Clause 6.1 requires the risk assessment and treatment process that ISOwl’s risk module implements.

Risk management

User-facing documentation for the risk register and heat map.

Asset management

Assets are the starting point for risk identification. Build your inventory before registering risks.

Findings

Track corrective actions for risks that generate nonconformities or audit findings.

Store reference

Technical reference for addRisk() and the full risk data shape in the Zustand store.

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