A formal management system is a type of management system that provides the means for

organizations to improve internal controls and management competence. A formal management

system is a documented system that defines the policies, objectives, processes, procedures, roles,

responsibilities, and resources for managing a specific aspect of the organization’s performance. A

formal management system is based on a recognized standard or framework that specifies the

requirements and best practices for achieving the desired outcomes and performance. A formal

management system also includes mechanisms for monitoring, measuring, reviewing, and improving

the system’s effectiveness and efficiency. A formal management system helps the organization to

demonstrate its commitment and capability to meet the expectations and needs of its stakeholders,

such as customers, regulators, employees, suppliers, etc. A formal management system also helps

the organization to identify and manage the risks and opportunities that may affect its performance

and continuity. Examples of formal management systems are ISO 22301 for business continuity

management, ISO 9001 for quality management, ISO 14001 for environmental management, ISO

27001 for information security management, etc. Reference:

ISO 22301 Auditing eBook, Chapter 1: Introduction to Business Continuity Management Systems,

Section 1.1: Management System Concepts1

What is a management system?2

ISO - Management system standards3