Which statement is true about risk management strategies?

Risk management involves devising strategies to mitigate exposure to potential losses or risks that can affect an organization. This process is crucial for ensuring that a company can identify, evaluate, and prioritize risks effectively. By developing comprehensive strategies, organizations can minimize the impact of unforeseen events, enhance decision-making, and improve overall resilience.

Successful risk management is an ongoing effort, which means it extends beyond a one-time assessment or implementation, reinforcing the importance of continual monitoring and adaptation of strategies as new risks emerge or as existing risks evolve. This reflects the dynamic nature of business environments.

The other options do not align with the principles of effective risk management. For instance, stating that risk management should only be performed once a year discounts the necessity of regular assessments due to changing circumstances. Asserting that risk management is solely the responsibility of the finance department overlooks the collaborative nature of risk management, which should involve various departments within an organization. Finally, the idea that no follow-up is required once strategies are implemented contradicts the need for continuous evaluation to ensure that risk controls remain effective and relevant.