CRISC · Question #39
Which of the following is the BEST indication that key risk indicators (KRls) should be revised?
The correct answer is B. An Increase In the number of risk threshold exceptions. An increase in the number of risk threshold exceptions is the best indication that Key Risk Indicators (KRIs) should be revised. This suggests that the current KRIs may no longer accurately reflect the organization's risk posture or are too broadly defined.
Question
Which of the following is the BEST indication that key risk indicators (KRls) should be revised?
Options
- AA decrease in the number of critical assets covered by risk thresholds
- BAn Increase In the number of risk threshold exceptions
- CAn increase in the number of change events pending management review
- DA decrease In the number of key performance indicators (KPls)
How the community answered
(35 responses)- A9% (3)
- B74% (26)
- C3% (1)
- D14% (5)
Why each option
An increase in the number of risk threshold exceptions is the best indication that Key Risk Indicators (KRIs) should be revised. This suggests that the current KRIs may no longer accurately reflect the organization's risk posture or are too broadly defined.
A decrease in critical assets covered by risk thresholds is an indication of potential gaps in risk coverage, not necessarily that the KRIs themselves need revision.
A rising number of risk threshold exceptions indicates that the existing KRIs or their defined thresholds are frequently being breached or deemed irrelevant in practice. This suggests the KRIs may not be accurately tracking the organization's current risk landscape, are set incorrectly, or are not providing meaningful insights, thus requiring revision to remain effective.
An increase in change events pending management review indicates operational workload or governance process, but not directly that the KRIs themselves are ineffective or require revision.
A decrease in KPIs (Key Performance Indicators) relates to operational performance, which is distinct from the function and effectiveness of KRIs in tracking risk.
Concept tested: KRI effectiveness and revision
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