Certified in Risk and Information Systems Control (CRISC) — Question 233

Which of the following criteria associated with key risk indicators (KRIs) BEST enables effective risk monitoring?

Answer options

• A. Use of industry risk data sources
• B. Sensitivity to changes in risk levels
• C. Low cost of development and maintenance
• D. Approval by senior management

Correct answer: B

Explanation

The correct answer is B, as sensitivity to changes in risk levels allows organizations to detect and respond to emerging risks promptly. While industry risk data sources (A) and low costs (C) are important, they do not directly enhance the monitoring effectiveness like sensitivity does. Approval by senior management (D) is more about governance than the actual monitoring capability of KRIs.