What role does risk monitoring play in risk management?

Risk monitoring plays a crucial role in risk management by tracking the implementation of risk responses and assessing their effectiveness over time. This process involves continuously reviewing and analyzing how well the risk mitigation strategies are working, ensuring that any potential issues are identified and addressed as they arise. By keeping a close watch on these responses, organizations can adapt and improve their risk management strategies, ensuring they remain aligned with changing business conditions and threats.

This monitoring also helps in understanding whether the risk appetite is being met and if adjustments to the organization's risk management framework are necessary. Such proactive management is essential in minimizing vulnerabilities and maximizing the effectiveness of the risk management program. This ongoing process ensures that organizations can respond appropriately to new risks or changes in existing risks, maintaining resilience and stability.