How often should a risk assessment be conducted?

Conducting a risk assessment annually or as significant changes occur is essential in a Business Continuity Plan (BCP). This frequency is recommended because risks can evolve with changes in the business environment, technology, regulations, and other factors. An annual assessment establishes a regular review process, ensuring that risks are identified, analyzed, and mitigated effectively.

Additionally, evaluating risks when significant changes occur—such as mergers, acquisitions, new product launches, or changes in regulatory requirements—allows organizations to stay proactive and responsive. This approach helps maintain an up-to-date understanding of potential threats and vulnerabilities that could impact operations.

In contrast, conducting risk assessments every month may be impractical for many organizations due to the resource demands and the potential for diminishing returns, while a five-year interval may lead to outdated assessments, failing to capture rapid developments. Assessing risks only after a major incident neglects the importance of proactive planning and risk management, which is crucial for minimizing disruption and safeguarding the organization.