CRISC · Question #356
When determining the accuracy of a key risk indicator (KRI), it is MOST important that the indicator:
The correct answer is A. is correlated to risk and tracks variances in the risk. For a Key Risk Indicator (KRI) to be accurate and effective, it must directly relate to a specific risk and be capable of demonstrating changes or trends in that risk's status.
Question
When determining the accuracy of a key risk indicator (KRI), it is MOST important that the indicator:
Options
- Ais correlated to risk and tracks variances in the risk.
- Bis assigned to IT processes and projects with a low level of risk.
- Chas a high correlation with the process outcome.
- Dtriggers response based on risk thresholds.
How the community answered
(49 responses)- A94% (46)
- C2% (1)
- D4% (2)
Why each option
For a Key Risk Indicator (KRI) to be accurate and effective, it must directly relate to a specific risk and be capable of demonstrating changes or trends in that risk's status.
An accurate Key Risk Indicator (KRI) must have a strong correlation with the actual risk it is designed to measure, allowing the organization to track fluctuations and identify emerging patterns or changes in the risk's likelihood or impact over time.
KRIs are used for all levels of risk, not just low-level risks; their purpose is to provide early warning regardless of risk level.
While a KRI may relate to a process outcome, its primary purpose is to indicate changes in risk, not just general process performance.
Triggering a response based on thresholds is a function of using the KRI, not a defining characteristic of its accuracy.
Concept tested: Key Risk Indicator (KRI) accuracy
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