The PRIMARY benefit of selecting an appropriate set of key risk indicators (KRIs) is that they:
A.
serve as a basis for measuring risk appetite.
B.
align with the organization ' s risk profile.
C.
provide a warning of emerging high-risk conditions.
D.
provide data for updating the risk register.
The Answer Is:
C
This question includes an explanation.
Explanation:
According to the ISACA Risk and Information Systems Control study guide and handbook, the primary benefit of selecting an appropriate set of key risk indicators (KRIs) is that they provide a warning of emerging high-risk conditions. KRIs are metrics that monitor changes in the level of risk exposure and contribute to the early warning signs that enable organizations to report risks, prevent crises, and mitigate them in time. KRIs help risk managers to identify potential threats, assess their impact and likelihood, and take proactive measures to reduce the risk or seize the opportunity12
1: ISACA Risk and Information Systems Control Study Guide, 4th Edition, page 33 2: ISACA Risk and Information Systems Control Handbook, 1st Edition, page 25
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