How does ISO 27001 contribute to risk management?

ISO 27001 plays a crucial role in risk management by providing a comprehensive framework for identifying and managing risks related to information security. This framework helps organizations systematically assess potential risks to their information assets and implement appropriate controls to mitigate those risks. The standard emphasizes a risk-based approach, enabling organizations to prioritize their security efforts according to the level of risk they face.

Through the establishment of an Information Security Management System (ISMS), ISO 27001 supports ongoing risk assessment, continuous monitoring, and improvement of security measures. Organizations can identify vulnerabilities, evaluate the likelihood and impact of threats, and take proactive steps to manage those risks effectively.

The other options suggest approaches that don’t accurately represent the essence of ISO 27001. For instance, the idea that it completely removes all risks is unrealistic, as no system can eliminate all risks entirely. Focusing solely on physical security overlooks the broader scope of information security, which includes technology, processes, and people. Relying on third-party audits doesn't provide the proactive and comprehensive internal approach to risk management that ISO 27001 advocates; instead, it complements the internal mechanisms set in place by the organization itself.