What should organizations do to effectively manage risk?

To effectively manage risk, it is essential for organizations to conduct regular risk assessments and update their policies accordingly. This proactive approach ensures that organizations can identify, analyze, and address potential threats before they become significant issues. By regularly assessing risks, organizations can stay informed about changes in their environment, such as new vulnerabilities, evolving threats, or changes in business operations. This ongoing process allows them to update their risk management strategies and policies to align with current circumstances, ensuring they remain effective in safeguarding sensitive information and compliance requirements.

Other options reflect less effective or undesirable approaches to risk management. Ignoring identified risks can lead to serious vulnerabilities, especially as the threat landscape evolves. Relying solely on third-party audits does not provide the continuous, in-depth understanding of risks that regular internal assessments can offer. Waiting for incidents to evaluate risks can result in reactive management, which is generally less effective than proactive measures to mitigate risks before they occur. Thus, regular assessments and policy updates are critical for maintaining robust risk management practices.