An enterprise wishes to establish key risk indicators (KRIs) in an effort to better manage...

An enterprise that wishes to establish key risk indicators (KRIs) in an effort to better manage IT risk should first identify the enterprise risk appetite, because this would help to define the level of risk that the enterprise is willing and able to accept in pursuit of its objectives and value creation. The enterprise risk appetite should consider the external and internal factors that influence the IT environment, such as market trends, customer demands, innovation opportunities, regulatory requirements, and business strategies12. The KRIs should align with the enterprise risk appetite, and measure the potential impact and likelihood of the risks that may affect the IT performance and outcomes12. References := ISACA, CGEIT Review Manual, 7th Edition, 2019, page 75-76.