CRISC · Question #452
What is a risk practitioner's BEST approach to monitor and measure how quickly an exposure to a specific risk can affect the organization?
The correct answer is C. Create key risk indicators (KRIs). Key Risk Indicators (KRIs) are the best approach for a risk practitioner to monitor and measure how quickly an exposure to a specific risk can affect the organization.
Question
What is a risk practitioner's BEST approach to monitor and measure how quickly an exposure to a specific risk can affect the organization?
Options
- ACreate an asset valuation report.
- BCreate key performance indicators (KPls).
- CCreate key risk indicators (KRIs).
- DCreate a risk volatility report.
How the community answered
(44 responses)- A7% (3)
- B5% (2)
- C75% (33)
- D14% (6)
Why each option
Key Risk Indicators (KRIs) are the best approach for a risk practitioner to monitor and measure how quickly an exposure to a specific risk can affect the organization.
An asset valuation report determines the monetary value of assets, which is important for understanding potential impact but doesn't monitor changes in risk exposure over time.
KPIs measure the performance of processes or controls, not the direct exposure or velocity of a specific risk itself.
KRIs are metrics used to provide an early signal of increasing risk exposure, allowing an organization to proactively manage and respond to potential threats. They help measure how quickly an exposure could affect the organization by tracking risk-related conditions.
A 'risk volatility report' is not a standard risk management term or tool specifically designed for monitoring the speed of risk exposure.
Concept tested: Key Risk Indicators (KRIs)
Topics
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