What is the role of monitoring in the risk management process?

Monitoring plays a critical role in the risk management process by ensuring that the strategies put in place to manage risks are functioning as intended and are effective over time. This involves regularly reviewing risk management strategies and their outcomes to assess whether they are still valid in light of the current environment and any changes that may have occurred.

By continuously monitoring risks, organizations can identify new or emerging risks that may not have been initially recognized and can adjust their strategies accordingly. This proactive approach helps to keep risk management robust and responsive, ensuring that risks are effectively mitigated and that the organization can adapt to any changes in its risk landscape.

The focus on the effectiveness of risk management strategies and the identification of risk changes are both essential for maintaining organizational resilience and achieving strategic objectives in a dynamic environment.