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The correct answer is based on the requirements set forth by HIPAA, which emphasizes the importance of conducting regular risk assessments to safeguard protected health information (PHI). A covered entity is required to perform a risk assessment at least once a year or whenever there are significant changes to their operations, such as the introduction of new technologies, changes in workforce, or updates to their processes that could impact the privacy or security of PHI.

This regular evaluation is crucial for identifying potential vulnerabilities in data protection measures and for ensuring compliance with HIPAA regulations. Risk assessments help organizations evaluate their current security measures, assess the risks associated with their data handling practices, and implement corrective actions as needed.

Infrequent assessments or conducting them only when specific events occur—like hiring new employees—would not adequately address evolving risks or vulnerabilities in the security landscape, which is why those options do not align with the requirement for annual assessments or when changes occur. Furthermore, only assessing risks when required by law does not sufficiently protect against the day-to-day threats to data security that can arise, making the proactive approach of regular assessments essential.