Which component of internal controls evaluates the organization's strategy in light of the risks involved?

The component of internal controls that evaluates the organization's strategy in light of the risks involved is the risk assessment. This component involves identifying and analyzing relevant risks that could impact the achievement of the organization's objectives. It allows organizations to understand the potential threats that may arise from their chosen strategies and helps them determine how to mitigate those risks effectively.

Through the risk assessment process, organizations can prioritize risks based on their potential impact and likelihood, informing those responsible for governance and management. This enables the effective design and implementation of controls to manage or minimize those risks, ensuring that the organization is better positioned to achieve its strategic objectives while considering the uncertainties present in an evolving business environment.

The other components, while essential for a robust internal control framework, serve different purposes. The control environment sets the tone for the organization, establishing a culture of integrity and ethical behavior. Monitoring involves ongoing assessments of the internal control systems to ensure their effectiveness over time. Information and communications focus on the systems used to provide timely and accurate information across the organization, facilitating decision-making and control activities.