CRISC · Question #533
A key performance indicator (KPI) shows that a process is operating inefficiently, even though no control issues were noted during the most recent risk assessment. Which of the following should be…
The correct answer is B. Recalibrate the key performance indicator (KPI). If a KPI indicates inefficiency despite no noted control issues in a recent risk assessment, the initial step should be to verify the KPI's accuracy and relevance to ensure it is correctly measuring the process.
Question
A key performance indicator (KPI) shows that a process is operating inefficiently, even though no control issues were noted during the most recent risk assessment. Which of the following should be done FIRST?
Options
- AImplement new controls.
- BRecalibrate the key performance indicator (KPI).
- CRedesign the process.
- DRe-evaluate the existing control design.
How the community answered
(42 responses)- A21% (9)
- B60% (25)
- C7% (3)
- D12% (5)
Why each option
If a KPI indicates inefficiency despite no noted control issues in a recent risk assessment, the initial step should be to verify the KPI's accuracy and relevance to ensure it is correctly measuring the process.
Implementing new controls would be premature since the issue might lie with the KPI, not necessarily with the process or existing controls.
When a KPI shows a process is inefficient but risk assessments find no control issues, it suggests a potential misalignment or inaccuracy in the KPI itself. Recalibrating or re-evaluating the KPI ensures that it is measuring the right metrics and thresholds correctly before making assumptions about the process or controls.
Redesigning the process is a significant undertaking and should only be considered after confirming that the KPI is accurate and the inefficiency is indeed real, not an artifact of mismeasurement.
Re-evaluating existing control design would be appropriate if the risk assessment indicated control issues, but the question states "no control issues were noted."
Concept tested: KPI validation and troubleshooting
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