Key risk indicators (KRIs) are metrics designed to:
A.
alert there is an increased chance of exceeding risk appetite.
B.
be a direct measure of risk for each business line.
C.
measure current risk levels in comparison to past levels.
The Answer Is:
A
This question includes an explanation.
Explanation:
KRIs are designed to provide early warning signs that a risk event is becoming more likely or that the organization's risk appetite may be exceeded. They are leading indicators that help proactively manage risk.
While KRIs can be used to measure risk within business lines (B), their primary purpose is to alert about potential changes in risk levels, not just provide a static measure. Comparing current to past levels (C) can be part of KRI monitoring, but the focus is on early warning.
[Reference: ISACA materials on risk monitoring and KRIs, often within the Risk IT Framework and related publications, emphasize the role of KRIs in providing early warning signs of increasing risk or potential breaches of risk appetite., ]
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