What is the purpose of risk monitoring and review?

The purpose of risk monitoring and review centers on ensuring that risk responses remain effective over time. This process involves continuously assessing the risk environment and the effectiveness of implemented controls and response strategies. As businesses and their operating environments evolve, so too can the risks they face. Effective risk monitoring helps organizations stay proactive in identifying new risks, reassessing existing risks, and determining if risk responses are operating as intended.

By regularly reviewing and monitoring risks, organizations can adapt their risk management strategies to ensure they are current and effective, thereby minimizing potential disruptions or losses. This ongoing review process contributes to overall organizational resilience and enhances the ability to respond to emerging threats promptly.

In contrast, other options do not capture the essence of what risk monitoring and review entails. Static assessments of risks do not reflect the dynamic nature of risk; reducing the frequency of assessments would likely lead to a lapse in awareness regarding changing risks; and creating unrelated reports for compliance tracking does not align with the proactive nature of monitoring risks directly impacting organizational objectives.