Which of the following is a primary component of risk management?

The primary component of risk management is the continuous monitoring of risks. This approach is crucial because risk is not static; it continually evolves due to changes in internal and external factors such as market conditions, regulations, and organizational changes. Continuous monitoring allows organizations to identify new risks, assess existing ones, and implement timely responses. This proactive process helps ensure that risk management strategies remain effective and relevant over time.

Effective risk management requires ongoing assessment, adaptation, and improvement, making continuous monitoring an integral part of safeguarding assets and achieving organizational objectives. By consistently monitoring risks, organizations can better prepare for potential disruptions and capitalize on opportunities that arise from changes in the risk landscape.