What is the most important reason for conducting periodic risk assessments?

Conducting periodic risk assessments is critical because business risk is subject to frequent change. This dynamic nature of risk arises from various factors such as evolving technologies, shifts in market conditions, changes in regulatory requirements, and modifications in organizational strategies. By regularly assessing risks, organizations can identify new threats and vulnerabilities that may have emerged since the last assessment, allowing them to adapt their security measures and controls accordingly.

This continuous monitoring ensures that the risk management practices remain relevant and effective, thereby protecting the organization's assets and objectives in an ever-changing environment. It also reinforces the organization's ability to respond proactively rather than reactively to emerging risks, ultimately contributing to better decision-making and resource allocation in risk management strategies.