An enterprise wants to establish key risk indicators (KRIs) in an effort to better manage IT risk. Which of the following should be identified FIRST?

Identifying the enterprise risk appetite first is crucial because it defines the overall level of risk the organization is willing to accept, providing the necessary context and thresholds against which KRIs will be set and monitored to determine if risks are within acceptable limits.

Key performance metrics (KPMs or KPIs) measure performance, not risk, and are therefore not the primary starting point for defining KRIs.

Risk mitigation strategies are developed to address identified risks, but the decision to mitigate and the acceptable residual risk level depend on the defined risk appetite.

Enterprise architecture components define the structure of IT systems, which is relevant for identifying where risks might exist, but not for defining the organization's tolerance for those risks.