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CRISC · Question #192

Which of the following provides the MOST useful information for developing key risk indicators (KRIs)?

The correct answer is D. Possible causes of materialized risk. Understanding the possible causes of materialized risk provides the most valuable information for developing Key Risk Indicators (KRIs), as KRIs are metrics that signal increasing risk exposure.

Submitted by minji_kr· Apr 18, 2026IT Risk Assessment

Question

Which of the following provides the MOST useful information for developing key risk indicators (KRIs)?

Options

  • ABusiness impact analysis (BIA) results
  • BRisk scenario ownership
  • CRisk thresholds
  • DPossible causes of materialized risk

How the community answered

(31 responses)
  • A
    13% (4)
  • B
    6% (2)
  • C
    3% (1)
  • D
    77% (24)

Why each option

Understanding the possible causes of materialized risk provides the most valuable information for developing Key Risk Indicators (KRIs), as KRIs are metrics that signal increasing risk exposure.

ABusiness impact analysis (BIA) results

BIA results help understand the *impact* of a materialized risk, but not necessarily the *causes* or precursors that would serve as effective KRIs.

BRisk scenario ownership

Risk scenario ownership determines accountability, which is important for risk management but doesn't directly provide information for *developing* the indicators themselves.

CRisk thresholds

Risk thresholds define acceptable limits for risk, which are used to evaluate KRIs, but they are typically set *after* KRIs are developed, not as the primary input for creating them.

DPossible causes of materialized riskCorrect

Key Risk Indicators (KRIs) are designed to provide an early warning of potential risk events. Therefore, identifying the *possible causes of materialized risk* directly informs what specific conditions or precursors should be monitored to predict when a risk might become a reality.

Concept tested: Key Risk Indicator (KRI) development

Topics

#Key Risk Indicators (KRIs)#Risk Monitoring#Risk Analysis#Risk Causes

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