CGEIT · Question #281
A board of directors wants to ensure the enterprise is responsive to changes in its environment that would directly impact critical business processes. Which of the following will BEST facilitate…
The correct answer is B. Monitoring key risk indicators (KRIs). Monitoring key risk indicators (KRIs) will best facilitate the board's objective to ensure enterprise responsiveness to environmental changes impacting critical business processes.
Question
A board of directors wants to ensure the enterprise is responsive to changes in its environment that would directly impact critical business processes. Which of the following will BEST facilitate meeting this objective?
Options
- AScheduling frequent threat analyses
- BMonitoring key risk indicators (KRIs)
- CRegularly reviewing the enterprise risk appetite
- DImplementing a competitive intelligence tool
How the community answered
(26 responses)- A4% (1)
- B69% (18)
- C12% (3)
- D15% (4)
Why each option
Monitoring key risk indicators (KRIs) will best facilitate the board's objective to ensure enterprise responsiveness to environmental changes impacting critical business processes.
Scheduling frequent threat analyses is important for identifying new threats, but KRIs offer a continuous, dynamic monitoring mechanism for emerging risks and changes across the enterprise.
Monitoring key risk indicators (KRIs) provides early warning signals of potential risks and changes in the enterprise's environment, enabling proactive responses and timely adjustments before critical business processes are severely impacted, thus ensuring responsiveness.
Regularly reviewing the enterprise risk appetite establishes the boundaries for acceptable risk but doesn't provide the real-time monitoring needed to ensure responsiveness to ongoing environmental shifts.
Implementing a competitive intelligence tool focuses on market and competitor analysis, which is broader than the specific objective of monitoring direct impacts on critical business processes from environmental changes.
Concept tested: Risk monitoring and early warning systems
Source: https://www.isaca.org/resources/isaca-journal/issues/2009/volume-1/the-use-of-key-risk-indicators-in-it-governance
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