How can businesses monitor risks they have identified and analysed?

 

-Risk monitoring is a process of assessing the implementation of an already identified, evaluated, and analysed risk management strategy.

-The process of monitoring risks involves setting a schedule of how often one can assess the risk, what to monitor, how to redefine the mitigation strategies and how to report or record the changes.

How Businesses can Monitor Risks

• Identify new risks
• Re-examining the risk
• Strategy mitigation
• Validate the plans
• Record findings and implement changes

Step-by-step explanation

• Identify new risks-activities in a business are always changing and evolving and when the risk management process is taking long, new risks may come up. The mitigation strategy may become ineffective if new risks are not being tracked. Updating the list of risks is a very important part of risk maintenance and monitoring.
• Re-examining the Risk- a business enterprise can re-examine the risk to establish whether the risk will require less or more mitigation. Businesses can ask themselves questions such as whether the environment has impacted the risk in any way.
• Strategy Mitigation- risk monitoring is a process that needs to ensure that the risk management plan meets the organization's needs. Mitigation strategies involve processes of status and effectiveness testing. This decides whether the plan is implemented or not.
• Validate the plans- when reviewing already identified and analyzed risk, previous risk assessments need to be validated. It is therefore advisable to validate previous risk assumptions and state of effectiveness as this will help monitor the risk over time.
• Record findings and implement changes- the monitoring process has to be recorded in writing or electronically to keep track of the changes in the risk over time. This process also has to include the implementation of changes for example identifying and dealing with new risks.