Sally Savoia’s

. Sally Savoia, a risk management and compliance expert with 25 years of experience, offers key insights into when and how companies should update their risk management frameworks. One of the most important triggers for updating a risk management framework is a change in the regulatory environment. New laws, regulations, or guidelines can significantly alter the risk landscape, especially in highly regulated industries like finance, healthcare, and technology.

Sally emphasizes that when new regulations are introduced, organizations should assess how these changes impact their current risk controls and processes. For instance, data privacy laws such as the General Data Protection Regulation (GDPR) or the California Consumer Privacy Act (CCPA) may require additional data protection measures, documentation, and reporting mechanisms.

“Staying compliant is not just about knowing the new regulations but about integrating them into your risk management framework,” Sally advises. She recommends reviewing and updating relevant policies, training employees on new compliance requirements, and adjusting risk tolerance levels based on the new legal landscape.

Sally points out that major organizational shifts, such as mergers, acquisitions, leadership transitions, or restructuring, are prime moments to update your risk management framework. Such changes often introduce new risks or alter existing ones, necessitating a reassessment of risk priorities.