Which of the following is a hallmark of effective risk oversight?

Periodic reviews of risk management processes are a hallmark of effective risk oversight because they ensure that organizations continually reassess and refine their understanding of risks in a dynamic environment. Regular reviews allow the board and management to stay informed about emerging risks, changes in the business landscape, and the effectiveness of risk mitigation strategies. This proactive approach enables organizations to adapt their risk management efforts based on current conditions and align them with their strategic objectives.

By regularly evaluating risks, organizations foster a culture of accountability and proactive risk management, which is vital for long-term sustainability and success. This continuous improvement process is essential for identifying new risks and ensuring that existing controls are still appropriate and effective in mitigating potential threats. It demonstrates a commitment to responsible governance and enhances the ability to manage uncertainties effectively.