Which statement about risk assessment is accurate?

The statement that risk assessment should be an ongoing process is accurate because effective risk management requires continuous monitoring and evaluation of the risk environment. Risks are dynamic and can evolve due to various factors such as changes in the regulatory landscape, technological advancements, market conditions, and organizational changes. An ongoing process ensures that organizations can identify new risks as they arise, reassess existing risks, and implement timely and appropriate risk mitigation strategies. This adaptability is crucial for maintaining a robust operational risk management framework that can safeguard an organization from potential incidents and losses over time.

In contrast, considering risk assessment as a one-time exercise undermines the necessity for vigilance and adaptation. Organizations that treat risk assessment as a static or singular event may overlook emerging threats and fail to respond effectively. Additionally, focusing solely on employee behavior limits the understanding of the broader risk landscape, which includes processes, systems, and external factors that can also contribute to operational risk. Lastly, suggesting that risk assessment is only necessary for financial institutions overlooks its critical importance across all sectors, as any organization can encounter operational risks that need to be managed.