Which of the following is the MOST important criteria for selecting key risk indicators (KRIs)?

While historical data can be useful, its availability isn't the most important criterion; a KRI's predictive power is.

Implementation and reporting effort are practical considerations but secondary to the KRI's effectiveness in signaling risk.

The ability to display trends is valuable but stems from the KRI being sensitive and reliable over time; it's a consequence, not the primary selection criterion.

Sensitivity means the KRI can detect changes in risk levels quickly and effectively, while reliability ensures the data used for the KRI is accurate and consistently measurable. KRIs must be both sensitive enough to provide early warnings and reliable enough to be trusted for decision-making.