CRISC · Question #93
Which of the following will BEST help to ensure key risk indicators (KRIs) provide value to risk owners?
The correct answer is B. Timely notification. For Key Risk Indicators (KRIs) to be valuable, they must enable risk owners to act promptly on emerging risks. Timely notification ensures risk owners receive relevant information quickly, allowing them to make informed decisions and take appropriate action before risks…
Question
Which of the following will BEST help to ensure key risk indicators (KRIs) provide value to risk owners?
Options
- AOngoing training
- BTimely notification
- CReturn on investment (ROI)
- DCost minimization
How the community answered
(48 responses)- A4% (2)
- B81% (39)
- C13% (6)
- D2% (1)
Why each option
For Key Risk Indicators (KRIs) to be valuable, they must enable risk owners to act promptly on emerging risks. Timely notification ensures risk owners receive relevant information quickly, allowing them to make informed decisions and take appropriate action before risks escalate significantly.
Ongoing training for risk owners is beneficial for understanding risk management, but it doesn't directly ensure the value of the KRIs themselves in providing actionable insights; timely data delivery does.
The effectiveness of KRIs lies in their ability to provide early warnings. If risk owners are not notified in a timely manner when KRI thresholds are breached or trends emerge, the opportunity for proactive intervention is lost, diminishing the KRI's value. Timely notification enables prompt decision-making and risk treatment.
Return on investment (ROI) is a measure of financial performance, not a mechanism that directly ensures KRIs provide operational value to risk owners in managing risks.
Cost minimization is a business objective, not a direct factor that helps KRIs provide value to risk owners in the context of risk management, although efficient processes are always good.
Concept tested: KRI effectiveness factors
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