Why is ongoing risk monitoring critical in risk management?

Ongoing risk monitoring is essential in risk management because it evaluates the efficiency of risk management strategies over time. As risks are dynamic and can evolve due to changes in the external and internal environments of an organization, consistent monitoring allows for the assessment of how well the implemented strategies are handling those risks.

By regularly reviewing and analyzing the effectiveness and impact of these strategies, organizations can make informed decisions about necessary adjustments or enhancements to their risk management practices. This proactive approach helps ensure that risks are managed effectively and that the organization remains resilient despite any new challenges that may arise.

Monitoring provides the necessary data to determine whether risk controls are effective and sustainable over time, and it helps in identifying any gaps that may emerge in the risk management framework, ensuring continuous improvement and adaptation of risk strategies.