Certified in Risk and Information Systems Control (CRISC) — Question 986

Which of the following is the MAIN benefit to an organization using key risk indicators (KRIs)?

Answer options

• A. KRIs assist in the preparation of the organization’s risk profile.
• B. KRIs signal that a change in the control environment has occurred.
• C. KRIs provide an early warning that a risk threshold is about to be reached.
• D. KRIs provide a basis to set the risk appetite for an organization.

Correct answer: C

Explanation

The correct answer is C because KRIs are designed to provide early warnings of potential risks before they escalate. Options A and B, while relevant, do not highlight the proactive nature of KRIs in risk management. Option D pertains to risk appetite setting but is not the primary function of KRIs.