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Question 64 - IT Risk Fundamentals discussion

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When selecting a key risk indicator (KRI), it is MOST important that the KRI:

A.

supports established KPIs.

Answers
A.

supports established KPIs.

B.

produces multiple and varied results.

Answers
B.

produces multiple and varied results.

C.

is a reliable predictor of the risk event.

Answers
C.

is a reliable predictor of the risk event.

Suggested answer: C

Explanation:

Key Risk Indicators (KRIs):

KRIs are metrics used to signal the potential increase in risk exposures in various areas of an organization.

They provide early warnings that risk levels are changing, which allows for proactive management.

Importance of Reliability:

The primary purpose of a KRI is to serve as an early warning system for potential risk events.

Reliability in prediction ensures that KRIs are effective in providing timely alerts before risks materialize.

Reference:

ISA 315 (Revised 2019), Anlage 6 mentions the need for effective monitoring and identification of risk indicators to manage IT and other operational risks.

asked 18/11/2024
Chan Park
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