Question

How often should an organization review the components of its enterprise risk management framework?

When a new strategy is developed
Only if a major incident has occurred
At an agreed-upon and regular interval
Every three years

Answer 1

An organization should review the components of its enterprise risk management framework at an agreed-upon and regular interval to ensure its effectiveness and address emerging risks.

Step-by-step explanation:

An organization should review the components of its enterprise risk management framework at an agreed-upon and regular interval. This means that the organization should establish a specific timeframe, such as annually or biennially, to conduct a comprehensive review of its risk management framework.

This regular review allows the organization to assess the effectiveness of its risk management processes, identify any new or emerging risks, and make necessary adjustments to the framework based on changing internal and external factors.

Waiting only if a major incident has occurred or every three years may lead to outdated and ineffective risk management practices, putting the organization at greater risk.