How often should you or your organization perform a risk assessment?

Risk assessments are an important part of any organization's risk management process. They help identify potential risks and vulnerabilities that could threaten the organization's goals, objectives, and assets. But how often should you or your organization perform a risk assessment? The answer to this question depends on several factors, including the size of the organization, the complexity of its operations, the nature of its industry, and the types of risks it faces. Generally speaking, risk assessments should be conducted on a regular basis, with the frequency of assessments varying depending on the organization's specific circumstances. For example, small businesses with relatively simple operations and low-risk profiles may only need to conduct a risk assessment once a year or every few years. On the other hand, larger organizations with more complex operations and higher-risk profiles may need to conduct risk assessments more frequently, such as every six months or even quarterly.

It's also important to consider the frequency of assessments and the triggers that might prompt an organization to conduct a risk assessment. For example, major changes to an organization's operations, such as mergers, acquisitions, or the adoption of new technology, may require a reassessment of risk. Similarly, external factors such as new laws or regulations that impact an organization's industry may require a review of risk. Ultimately, the frequency of risk assessments should be determined by an organization's risk management strategy and the level of risk it is willing to tolerate. It's important to remember that risk assessments are not a one-time event, but an ongoing process that requires regular review and updating to remain effective.

The frequency of risk assessments should be based on an organization's unique circumstances and risk profile. Regular risk assessments are essential for effective risk management, and organizations should be prepared to conduct them as needed to ensure that they are identifying and managing potential risks.

references:

Davis, C. & Schiller, M., IT Auditing – Using Controls to Protect Information Assets, 3rd ed., McGraw-Hill, 2020.