CRISC · Question #573
A MAJOR advantage of using key risk indicators (KRIs) is that they:
The correct answer is D. Identify when risk exceeds defined thresholds. A key advantage of KRIs is their ability to signal when the level of risk approaches or surpasses predetermined thresholds, prompting timely intervention.
Question
A MAJOR advantage of using key risk indicators (KRIs) is that they:
Options
- AIdentify scenarios that exceed defined risk appetite.
- BHelp with internal control assessments concerning risk appetite.
- CAssess risk scenarios that exceed defined thresholds.
- DIdentify when risk exceeds defined thresholds.
How the community answered
(55 responses)- A4% (2)
- B2% (1)
- C7% (4)
- D87% (48)
Why each option
A key advantage of KRIs is their ability to signal when the level of risk approaches or surpasses predetermined thresholds, prompting timely intervention.
While related to risk appetite, KRIs specifically identify when risk exceeds thresholds, which are often set below or at the risk appetite to provide an early warning.
KRIs help monitor risk, which can inform control assessments, but their primary advantage isn't in aiding the assessment process itself concerning appetite, but rather in signaling risk status.
KRIs assess risk levels, not primarily "risk scenarios"; scenarios are broader descriptions of potential events, while KRIs track specific metrics to indicate the likelihood or impact of those scenarios.
KRIs are designed with specific thresholds, and when these thresholds are breached, it indicates that the risk level has become unacceptable or requires attention, enabling proactive management and response. They act as triggers for risk treatment activities.
Concept tested: Key Risk Indicator (KRI) advantage
Source: https://learn.microsoft.com/en-us/security/benchmark/azure/initiatives-risks-compliance-concepts#risk-indicators
Topics
Community Discussion
No community discussion yet for this question.