Certified in the Governance of Enterprise IT (CGEIT) — Question 36

Which of the following is the PRIMARY
purpose of an effective set of key risk indicators (KRIs)?

Answer options

• A. Identifying possible future adverse impacts on the enterprise
• B. Evaluating existing technology for risk monitoring capabilities
• C. Establishing executive level buy-in of the risk program
• D. Quantifying the productivity of the risk management team

Correct answer: A

Explanation

The correct answer, A, highlights that the primary function of KRIs is to foresee potential negative effects on the organization. The other options, while relevant to risk management, focus on evaluating technology, securing executive support, or measuring team productivity, which are not the main objectives of KRIs.