When should a risk assessment be performed?

A risk assessment is a systematic process of evaluating potential risks that may be involved in a projected activity or undertaking. Conducting a risk assessment periodically, at least annually, is essential for several reasons.

Firstly, the threat landscape is constantly evolving due to emerging technologies, new vulnerabilities, and changing regulations. Regular assessments help organizations stay abreast of these changes and update their risk management strategies accordingly.

Secondly, an annual review ensures that the organization can effectively respond to any new risks that may arise, including those from changes in the business environment, such as mergers and acquisitions, new product launches, or operational changes.

Thirdly, regular assessments help ensure compliance with legal and regulatory requirements, which often mandate routine risk evaluations as part of a comprehensive risk management framework.

Periodic assessments not only reinforce the organization’s commitment to security but also enable the proactive identification and mitigation of risks, ultimately supporting a culture of continuous improvement in security practices.

While it is indeed important to conduct assessments after an incident and to evaluate risks tied to new projects, these actions alone do not provide the comprehensive and ongoing management of risks that is necessary in today's fast-paced business and technological environment. Therefore, the rationale for making risk assessments an ongoing practice underscores their critical role in organizational resilience and security posture.