nerdexam
Isaca

CRISC · Question #135

Which of the following is the MAIN benefit to an organization using key risk indicators (KRIs)?

The correct answer is D. KRIs provide an early warning that a risk threshold is about to be reached. The main benefit of using Key Risk Indicators (KRIs) is that they provide an early warning that a specific risk threshold is about to be reached, enabling proactive intervention. KRIs are metrics that provide insight into potential future risks.

Submitted by wei.xz· Apr 18, 2026Risk Response and Reporting

Question

Which of the following is the MAIN benefit to an organization using key risk indicators (KRIs)?

Options

  • AKRIs assist in the preparation of the organization's risk profile.
  • BKRIs signal that a change in the control environment has occurred.
  • CKRIs provide a basis to set the risk appetite for an organization
  • DKRIs provide an early warning that a risk threshold is about to be reached.

How the community answered

(27 responses)
  • B
    4% (1)
  • C
    4% (1)
  • D
    93% (25)

Why each option

The main benefit of using Key Risk Indicators (KRIs) is that they provide an early warning that a specific risk threshold is about to be reached, enabling proactive intervention. KRIs are metrics that provide insight into potential future risks.

AKRIs assist in the preparation of the organization's risk profile.

While KRIs contribute to a holistic understanding of risk, their main purpose isn't preparing the risk profile itself, but rather monitoring the evolution of risks.

BKRIs signal that a change in the control environment has occurred.

KRIs might indirectly reflect changes in the control environment, but their primary function is to signal changes in risk exposure, not specifically control effectiveness.

CKRIs provide a basis to set the risk appetite for an organization

Risk appetite is a strategic decision set by management, not directly derived from or set by KRIs; KRIs are used to monitor adherence to that appetite.

DKRIs provide an early warning that a risk threshold is about to be reached.Correct

Key Risk Indicators (KRIs) are forward-looking metrics designed to provide early signals of increasing risk exposure or the impending breach of a risk threshold. This allows organizations to take timely preventative or mitigating actions before a risk event fully materializes, thereby minimizing potential negative impacts.

Concept tested: Key Risk Indicators (KRIs) benefit

Topics

#Key Risk Indicators#Risk monitoring#Early warning systems#Risk thresholds

Community Discussion

No community discussion yet for this question.

Sign up to join the discussion
Full CRISC Practice