When should a risk management strategy be revised?

A risk management strategy should be revised when significant changes occur in the internal or external environment because these changes can directly impact the organization’s risk profile. This might include shifts in market conditions, regulatory changes, technological advancements, or internal restructuring. Adapting the strategy in response to these changes ensures that the organization remains resilient and capable of effectively managing new and evolving risks.

For instance, if a new competitor enters the market or if there are changes in laws that affect operations, the original risk management tactics may no longer be effective or appropriate. Regularly updating the risk management strategy in alignment with these substantial developments allows the organization to mitigate risks proactively and seize opportunities that may arise from the changing landscape.