What is the purpose of monitoring risks in an organization?

The purpose of monitoring risks in an organization primarily revolves around making adjustments to controls as needed. This process involves continuously assessing the risk environment and evaluating the effectiveness of existing controls in mitigating identified risks. When risks are monitored, it becomes possible to detect any changes or emerging threats that may not have been previously accounted for. This proactive stance allows management to adapt their strategies and control measures accordingly to ensure that the organization remains resilient and agile in the face of potential challenges.

Effectively monitoring risks fosters a culture of awareness and responsiveness within the organization, enabling timely interventions that can mitigate adverse impacts. Through this vigilant approach, organizations can enhance their risk management practices, ensuring that they are not only compliant with regulations but also equipped to handle evolving risks.