Why is regular review of risk assessments important?

Regular review of risk assessments is crucial because it ensures that the assessments remain relevant and effective as conditions change. The business environment is dynamic, influenced by factors such as evolving regulations, changing market conditions, technological advancements, and shifts in organizational structure. When these factors change, the risks associated with certain operations, projects, or environments can also shift.

By regularly reviewing risk assessments, organizations can identify new risks that may have emerged and reassess previously identified risks to determine if their significance has changed. This continuous process of evaluation helps in maintaining effective risk management practices and ensures that the measures in place are adequate for current conditions. Thus, risk assessments that are not regularly updated may lead to oversights where emerging threats are not recognized or where existing strategies become ineffective, ultimately impacting the organization’s ability to manage risks effectively.