Certified in Risk and Information Systems Control (CRISC) — Question 937

A MAJOR advantage of using key risk indicators (KRIs) is that they:

Answer options

• A. identity when risk exceeds defined thresholds.
• B. assess risk scenarios that exceed defined thresholds.
• C. help with internal control assessments concerning risk appetite.
• D. identify scenarios that exceed defined risk appetite.

Correct answer: A

Explanation

The correct answer, A, highlights that KRIs are designed to signal when risks surpass predetermined limits, allowing organizations to take action. Options B, C, and D, while related to risk management, do not directly address the primary function of KRIs in identifying threshold breaches.