CISM · Question #845
Which of the following is MOST effective for communicating forward-looking trends to senior management?
The correct answer is A. Key risk indicators (KRIs). Key risk indicators (KRIs) are leading indicators - they are predictive metrics designed to signal emerging or increasing risk before an event occurs, making them the ideal tool for communicating forward-looking trends. KPIs (B) are lagging indicators that measure past…
Question
Which of the following is MOST effective for communicating forward-looking trends to senior management?
Options
- AKey risk indicators (KRIs)
- BKey performance indicators (KPIs)
- CRisk heat map
- DRisk register
How the community answered
(22 responses)- A82% (18)
- B5% (1)
- C9% (2)
- D5% (1)
Explanation
Key risk indicators (KRIs) are leading indicators - they are predictive metrics designed to signal emerging or increasing risk before an event occurs, making them the ideal tool for communicating forward-looking trends. KPIs (B) are lagging indicators that measure past performance against goals. Risk heat maps (C) and risk registers (D) are point-in-time snapshots of the current risk landscape, not trend-oriented tools. When senior management needs to understand where risks are heading - not just where they stand today - KRIs provide the predictive signal needed for proactive decision-making.
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