Which activity involves monitoring the effectiveness of risk management strategies?

The activity that involves monitoring the effectiveness of risk management strategies is risk evaluation. This process serves as a critical step where previously identified risks are assessed not only for their current impact and likelihood but also for the effectiveness of the measures taken to mitigate them. Monitoring involves reviewing whether the strategies implemented are working as intended and if they adequately address the risks, which is a core aspect of evaluation.

In risk evaluation, once strategies are implemented, it is essential to continuously assess their success and make necessary adjustments based on performance data. This iterative process ensures that risks are managed dynamically rather than statically.

Other activities such as risk reporting focus primarily on communicating risk status and decisions but do not inherently involve assessing the effectiveness of mitigation strategies. Risk identification is about recognizing potential risks in the first place, while risk prioritization deals with determining which risks are most critical to address, both of which happen before evaluating the ongoing effectiveness of risk management strategies. The emphasis in risk evaluation is on the continuous improvement of risk management efforts through careful monitoring and assessment.