How is risk monitoring defined?

Risk monitoring is best defined as the process of tracking and reviewing risks over time. This involves continuously observing the risk environment, assessing existing risks, and determining whether risk levels are changing or if new risks are emerging. By keeping an ongoing record of risks, organizations can ensure that they are aware of any developments that may increase or decrease those risks and can adjust their risk management strategies accordingly.

Effective risk monitoring enables organizations to stay responsive and proactive in their risk management efforts. It involves regular reporting, updates, and reviews, which help stakeholders understand the current risk landscape and make informed decisions based on the latest information.

In contrast, the other options address different facets of risk management. Identifying, measuring, and reducing risks relates more to the initial steps in risk assessment and control. Evaluating the effectiveness of risk controls focuses specifically on assessing how well current risk management strategies are performing. Finally, the decision-making process to address risks pertains to the actions taken in response to identified risks rather than the ongoing monitoring aspect. Thus, these definitions do not capture the essence of risk monitoring as well as the correct one.