CRISC Question #92: Real Exam Question with Answer & Explanation

Question

Using key risk indicators (KRIs) to illustrate changes in the risk profile PRIMARILY helps to:

Options

• Acommunicate risk trends to stakeholders.
• Bassign ownership of emerging risk scenarios.
• Chighlight noncompliance with the risk policy
• Didentify threats to emerging technologies.

Explanation

Key Risk Indicators (KRIs) are primarily used to provide early warnings and actionable insights into the organization's evolving risk landscape, making them essential for communicating risk trends to stakeholders. By tracking these indicators, organizations can proactively inform stakeholders about changes in the risk profile and potential impacts.

Common mistakes.

• B. Assigning ownership of emerging risk scenarios is a governance activity related to risk identification and treatment, not the primary function of KRIs themselves, which are for monitoring and signaling.
• C. While KRIs might indirectly highlight issues that could lead to noncompliance, their primary purpose is to signal changes in the risk profile, not specifically to flag noncompliance with policies. Compliance monitoring often uses Key Performance Indicators (KPIs) or specific compliance metrics.
• D. KRIs can certainly relate to emerging technologies, but their general purpose is to identify changes in the risk profile across the board, not limited primarily to threats to emerging technologies.

Concept tested. Purpose of Key Risk Indicators (KRIs)

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