Which of the following best describes the risk management lifecycle?

The risk management lifecycle is best described as a continuous process that encompasses identification, assessment, and monitoring of risks. This ongoing nature recognizes that risks are not static; they evolve over time and require regular review to ensure that responses and mitigation strategies remain effective.

Beginning with the identification phase, organizations systematically uncover potential risks that could impact their operations. Once identified, the assessment phase evaluates the significance and potential impact of these risks, allowing for prioritization and informed decision-making. The monitoring aspect ensures that risks are continually tracked and reviewed, adapting to changes in the operational environment and organizational objectives.

Such an approach enables organizations to remain proactive in managing risks rather than merely reacting to them as they occur. In contrast, the other options suggest a more limited or reactive view of risk management, which does not align with best practices in operational risk management.