Maintaining an effectiverisk management programrequiresongoing reviewbecause:
* Dynamic Risk Landscape:Threats and vulnerabilities evolve, necessitating continuous reassessment.
* Policy and Process Updates:Regular review ensures that risk management practices stay relevant and effective.
* Performance Monitoring:Allows for the evaluation of control effectiveness and identification of areas for improvement.
* Regulatory Compliance:Ensures that practices remain aligned with evolving legal and regulatory requirements.
Other options analysis:
* A. Approved budget:Important for resource allocation, but not the core of continuous effectiveness.
* B. Automated reporting:Supports monitoring but does not replace comprehensive reviews.
* C. Monitoring regulations:Part of the review process but not the sole factor.
CCOA Official Review Manual, 1st Edition References:
* Chapter 5: Risk Management Frameworks:Emphasizes the importance of continuous risk assessment.
* Chapter 7: Monitoring and Auditing:Describes maintaining a dynamic risk management process.