In risk management, what is the purpose of risk monitoring?

The purpose of risk monitoring is to continuously evaluate the risk environment to identify changes in existing risks or the emergence of new risks over time. This ongoing assessment is crucial as it allows organizations to adapt their risk management strategies and controls in response to evolving threats, vulnerabilities, and changes in business operations or regulatory requirements. By maintaining a dynamic understanding of the risk landscape, organizations ensure that their risk management efforts remain effective and relevant, ultimately safeguarding their objectives and resources.

Establishing new data acquisition processes, reducing the number of employees, or implementing marketing campaigns do not align with the fundamental goal of risk monitoring, which is centered on the assessment and management of risks rather than operational or strategic business decisions unrelated to risk management.