Podcast
Questions and Answers
What is the purpose of risk monitoring and evaluation?
What is the purpose of risk monitoring and evaluation?
- To prevent acceptance of risk that exceeds the risk acceptance criteria set by the business (correct)
- To collect and validate business, IT, and process goals and metrics
- To provide reports that are systematic and timely
- To monitor processes to ensure they are performed in line with established performance metrics
What is a key requirement for effective risk monitoring and evaluation?
What is a key requirement for effective risk monitoring and evaluation?
- Setting flexible risk acceptance criteria
- Gathering data from various sources in a timely and accurate manner (correct)
- Creating comprehensive reports on IT performance
- Aligning IT-related risk with business risk
How does risk monitoring contribute to enterprise performance management?
How does risk monitoring contribute to enterprise performance management?
- By ensuring alignment between IT-related risk and business risk (correct)
- By providing comprehensive reports on IT performance
- By evolving the goals and strategies of the enterprise
- By setting performance targets for individual processes
What is the purpose of strategic planning in relation to risk consideration?
What is the purpose of strategic planning in relation to risk consideration?
What is a Lag Risk Indicator?
What is a Lag Risk Indicator?
What is a Lead Risk Indicator?
What is a Lead Risk Indicator?
What is the purpose of Root Cause Analysis?
What is the purpose of Root Cause Analysis?
What should KRIs be linked to in order to be impactful?
What should KRIs be linked to in order to be impactful?
What does SMART stand for in the context of Key Risk Indicators (KRIs)?
What does SMART stand for in the context of Key Risk Indicators (KRIs)?
What are the benefits of using appropriate KRIs?
What are the benefits of using appropriate KRIs?
Which of the following is an example of a Key Risk Indicator (KRI)?
Which of the following is an example of a Key Risk Indicator (KRI)?
What can gap analysis be used for in the context of risk management?
What can gap analysis be used for in the context of risk management?
What do KRIs facilitate across the enterprise?
What do KRIs facilitate across the enterprise?
What is required for choosing the right KRIs?
What is required for choosing the right KRIs?
What should KRIs be communicated to for effective risk management?
What should KRIs be communicated to for effective risk management?
What do effective KRIs provide?
What do effective KRIs provide?
What is the purpose of control monitoring?
What is the purpose of control monitoring?
Which activity is considered a method of control monitoring?
Which activity is considered a method of control monitoring?
What is the main purpose of vulnerability scans?
What is the main purpose of vulnerability scans?
What is the focus of penetration tests?
What is the focus of penetration tests?
Which activity should be promptly reported and addressed in control monitoring?
Which activity should be promptly reported and addressed in control monitoring?
What is the main focus of independent assurance activities in control monitoring?
What is the main focus of independent assurance activities in control monitoring?
What is the primary purpose of monitoring controls in control monitoring?
What is the primary purpose of monitoring controls in control monitoring?
What should be done as the risk environment changes in control monitoring?
What should be done as the risk environment changes in control monitoring?
What is the primary purpose of KPIs in risk management?
What is the primary purpose of KPIs in risk management?
How do KRIs differ from KPIs in risk management?
How do KRIs differ from KPIs in risk management?
Which statement accurately describes KRIs?
Which statement accurately describes KRIs?
What is an example of a KRI trigger mentioned in the text?
What is an example of a KRI trigger mentioned in the text?
What does risk management recognize about the nature of risk?
What does risk management recognize about the nature of risk?
What is the primary purpose of vulnerability scans in the context of risk management?
What is the primary purpose of vulnerability scans in the context of risk management?
What do effective Key Risk Indicators (KRIs) provide in risk management?
What do effective Key Risk Indicators (KRIs) provide in risk management?
What is the purpose of analyzing root causes from realized risk, failed controls, or processes, and missed targets over time?
What is the purpose of analyzing root causes from realized risk, failed controls, or processes, and missed targets over time?
Which of the following is a characteristic of lead risk indicators?
Which of the following is a characteristic of lead risk indicators?
What type of metric is a lag risk indicator?
What type of metric is a lag risk indicator?
What is the primary purpose of Key Performance Indicators (KPIs) in risk management?
What is the primary purpose of Key Performance Indicators (KPIs) in risk management?
What type of indicators are Key Performance Indicators (KPIs) known as?
What type of indicators are Key Performance Indicators (KPIs) known as?
Why are Key Performance Indicators (KPIs) used to set benchmarks for risk management goals?
Why are Key Performance Indicators (KPIs) used to set benchmarks for risk management goals?
What is the primary focus of control monitoring activities?
What is the primary focus of control monitoring activities?
What should Key Risk Indicators (KRIs) be linked to in order to be impactful in risk management?
What should Key Risk Indicators (KRIs) be linked to in order to be impactful in risk management?
What is the primary focus of communication in the context of risk reporting principles?
What is the primary focus of communication in the context of risk reporting principles?
Why is concise information important in risk reporting principles?
Why is concise information important in risk reporting principles?
What is the purpose of communicating information at the right level of aggregation for the audience?
What is the purpose of communicating information at the right level of aggregation for the audience?
Why should potential problems be communicated in a timely manner in risk reporting principles?
Why should potential problems be communicated in a timely manner in risk reporting principles?
What is the main purpose of vulnerability scans in the context of risk management?
What is the main purpose of vulnerability scans in the context of risk management?
Study Notes
- KPIs (Key Performance Indicators) and KRIs (Key Risk Indicators) are interconnected in risk management.
- KPIs help identify underperforming aspects of an enterprise and require attention, while KRIs provide early warnings of increased risk.
- KPIs are measurable standards of performance and are often based on SMART metrics, tied to business functions, quantitatively measured, and used repeatedly.
- KRIs are forward-looking signals of potential risks and can trigger alerts when certain thresholds are met.
- An example of KPI and KRI: the risk of unpatched systems leading to data breaches. The enterprise sets a KPI of patching all critical patches within 30 days and a KRI trigger at 25 days.
- Continuous monitoring is an essential part of risk management, involving regular evaluation of selected controls, recording and evaluating events, and communicating the current risk and control status.
- Control monitoring ensures that I&T-related activities support business success, with proven methods for measuring their extent.
- Continuous risk and control monitoring is crucial for timely reporting and response to risk events and the development of effective risk management practices.
- Risk management is an ongoing cyclical process that recognizes the dynamic nature of risk and requires continuous assessment.
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Description
Test your knowledge on key risk indicator (KRI) attributes including effort, reliability, and sensitivity. Assess your understanding of how to select indicators based on data collection ease, correlation with risk, and representation of risk factors.
