When is it necessary to upgrade the system BIOS?

Upgrading the system BIOS is necessary whenever a BIOS update provides new functionality that is required for the operating system or hardware to operate correctly. The BIOS is fundamental in managing the communication between the operating system and the hardware components. Sometimes, manufacturers release updates to improve system stability, fix bugs, enhance compatibility with new hardware, or offer additional features that enhance performance. Therefore, if a specific update addresses essential compatibility or functionality issues, it becomes crucial to perform the upgrade.

The other options suggest conditions under which a BIOS update is required that do not reflect the proactive nature of system maintenance. Only upgrading in response to a hardware failure might leave a system vulnerable to issues that could be rectified with earlier updates. An arbitrary schedule such as annually does not consider the actual necessity based on updates and performance improvements available. Similarly, limiting BIOS upgrades exclusively to new video card installations does not take into account the broader implications of system compatibility and functionality with other hardware and software advancements.