In this lesson,
we will cover risk assessment frequency.
Risk assessment frequency refers the regularity
with which risk assessments are conducted
within an organization.
The frequency can vary greatly depending on the nature
of the organization, the type of risk involved,
and changes in the internal or external environment.
There are four main types of risk assessment frequencies
ad-hoc, recurring, one-time, and continuous.
First, we have ad-hoc risk assessments.
Ad-hoc risk assessments are conducted as and when needed,
often in response to a specific event
or situation that has the potential to introduce new risk
or change the nature of existing risk.
For instance, an organization might conduct
an ad-hoc risk assessment when launching
a new product, entering a new market,
or in response to a significant event,
such as a natural disaster or major change in regulations.
Second, we have recurring risk assessments.
Recurring risk assessments are conducted
at regular intervals such as annually,
quarterly, or monthly.
These assessments are typically part
of an organization's standard operating procedures
and are designed to ensure
that risks are continually identified,
analyzed, and managed effectively.
For example, a financial institution
might conduct recurring risk assessments
to monitor credit risk, market risk, and operational risk.
Another example of recurring risk assessments
would be a tech company
might conduct recurring penetration testing
where ethical hackers attempt to breach their systems
to identify vulnerabilities.
These assessments are scheduled regularly to ensure
that any new vulnerabilities that might have emerged
since the last assessment are identified and addressed.
Third, we have one-time assessments.
One-time risk assessments are conducted
for a specific purpose and are not repeated.
These assessments are often associated
with a particular project or initiative.
For instance, an organization might conduct
a one-time risk assessment
when implementing a new IT system,
undertaking a major construction project,
or planning significant organizational changes.
Now, before we move on to the final type of risk assessment
you need to understand the difference
between ad-hoc risk assessment
and one-time risk assessments.
One-time assessments are associated
with a specific project or initiative and are not repeated.
While ad-hoc risk assessments are conducted in response
to a specific event or situation and may be repeated
if similar circumstances arise in the future.
Fourth and finally, we have continuous risk assessments.
Continuous risk assessments involve ongoing monitoring
and evaluation of risk.
This approach is often enabled by technology
and involves real-time data collection and analysis.
For example, a cybersecurity team
might use continuous risk assessments
to monitor threats and vulnerabilities,
enabling them to respond quickly to any potential issue.
So remember, the frequency of risk assessments
can vary greatly depending on the needs of the organization
and the nature of the risk involved.
Ad-hoc assessments are conducted as needed,
often in response to specific events or situations.
Recurrent assessments are conducted at regular intervals
as part of an organization's standard operating procedures.
One-time assessments are conducted
for a specific purpose and are not repeated.
Continuous assessments involve ongoing monitoring
and evaluation of risk.
Each type of risk assessment frequency has its place
and can contribute to a robust
and effective risk management process.