CRISC · Question #335
Continuous monitoring of key risk indicators (KRIs) will:
The correct answer is B. provide an early warning so that proactive action can be taken. Continuous monitoring of Key Risk Indicators (KRIs) will provide an early warning, allowing for proactive action to be taken.
Question
Continuous monitoring of key risk indicators (KRIs) will:
Options
- Aensure that risk will not exceed the defined risk appetite of the organization.
- Bprovide an early warning so that proactive action can be taken.
- Cprovide a snapshot of the risk profile.
- Densure that risk tolerance and risk appetite are aligned.
How the community answered
(28 responses)- A7% (2)
- B89% (25)
- C4% (1)
Why each option
Continuous monitoring of Key Risk Indicators (KRIs) will provide an early warning, allowing for proactive action to be taken.
While KRI monitoring helps manage risk, it cannot absolutely 'ensure' that risk will not exceed appetite, as unforeseen events or residual risks always exist.
Key Risk Indicators (KRIs) are specifically designed to be forward-looking metrics that signal changes in risk exposure or the potential for future adverse events. Continuous monitoring enables organizations to promptly detect negative trends or breaches of established thresholds, facilitating timely, proactive interventions and risk mitigation strategies before risks escalate or cause significant negative impacts.
Continuous monitoring provides dynamic, real-time or near real-time information about risk, offering an ongoing view rather than a static 'snapshot' of the risk profile.
KRI monitoring helps keep risk within tolerance and appetite, but the alignment between tolerance and appetite is a strategic governance decision, not directly ensured by KRI monitoring alone.
Concept tested: KRI purpose and benefit
Source: https://nvlpubs.nist.gov/nistpubs/SpecialPublications/NIST.SP.800-39.pdf
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