Which of the following is the BEST indication that key risk indicators (KRIs) should be revised?
A.
An increase in the number of risk threshold exceptions
B.
An increase in the number of change events pending management review
C.
A decrease in the number of key performance indicators (KPIs)
D.
A decrease in the number of critical assets covered by risk thresholds
The Answer Is:
A
This question includes an explanation.
Explanation:
Risk threshold exceptions are instances when a KRI exceeds or falls below a predefined level or point that triggers an action or a warning. An increase in the number of risk threshold exceptions indicates that the KRIs are not reflecting the current risk exposure or environment accurately oreffectively. This may suggest that the KRIs are outdated, irrelevant, or poorly defined. Therefore, the KRIs should be revised to ensure that they are aligned with the organizational objectives, risk appetite, and risk management strategy.
References
•Key Risk Indicators: A Practical Guide | SafetyCulture