How frequently should risk assessments be evaluated in a well-functioning organization?

In a well-functioning organization, risk assessments should be evaluated regularly, at least annually or after significant changes because this approach ensures that the organization remains aware of its risk environment and is responsive to evolving circumstances. Regular evaluations enable the organization to identify new risks or changes in existing risks that may arise due to internal developments (such as new projects, changes in personnel, or shifts in strategy) or external factors (like regulatory changes or market dynamics).

Conducting risk assessments annually or in response to significant changes promotes a proactive risk management culture, allowing an organization to adjust its strategies and controls to mitigate potential threats effectively. This frequency enhances the organization’s resilience and ability to adapt to challenges, ultimately safeguarding its objectives and interests.

Other options suggest less frequent evaluations, which may leave the organization vulnerable to unforeseen risks or changes, undermining effective risk management practices.