How frequently should risk management plans be reviewed?

Risk management plans should be reviewed at least annually, or more frequently if changes occur, to ensure they remain relevant and effective in addressing the evolving risk landscape. This practice reflects the dynamic nature of risk, where both internal and external factors can influence the risk profile of an organization. Regular reviews allow organizations to identify emerging risks, assess the effectiveness of existing controls, and modify strategies to mitigate those risks accordingly.

By conducting annual reviews, organizations can stay proactive rather than reactive in their risk management approach. This frequency supports continuous improvement and ensures that the risk management strategies are aligned with the organization's objectives, regulatory requirements, and best practices. Additionally, if significant changes occur—such as new business initiatives, changes in operations, or shifts in the external environment—more frequent reviews become essential to adapt and respond appropriately to those changes.

Reviewing risk management plans only when new risks arise or only after an incident occurs can lead to a reactive stance, potentially overlooking significant threats or failing to capitalize on opportunities for improvement. Similarly, a five-year review cycle may not be sufficient given the fast-paced nature of many industries today. Regular, scheduled reviews are crucial for maintaining an effective risk management program.