Which of the following is a sign that a risk management strategy needs revision?

A sign that a risk management strategy needs revision is indicated by emerging trends in the external environment. This option highlights the necessity for organizations to stay adaptive and responsive to changes that occur outside their walls. These trends can encompass a variety of factors such as shifts in market demand, regulatory changes, technological advancements, or evolving social attitudes. If these trends are not accounted for in the existing risk management strategy, the organization may face increased vulnerabilities or may miss opportunities that arise from such changes.

Responding to external trends is crucial because a static risk management approach can lead to significant misalignments between the organization’s objectives and its risk environment. Regular monitoring and updating of the risk management strategy to align with these external factors ensure that the organization remains resilient and poised for growth amidst changing circumstances.