Risk Monitoring and Reporting Functions
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Questions and Answers

What is the purpose of key risk indicators (KRIs)?

  • To identify and use indicators for both performance and risk
  • To determine how well the process is performing
  • To assess and mitigate risk
  • To predict or indicate important risk (correct)
  • Why is ongoing monitoring considered an essential step of the risk management life cycle?

  • To deploy new security patches to servers
  • To detect unauthorized equipment or software
  • To identify new and emerging risks (correct)
  • To improve the process of continuous monitoring
  • What is the recommended approach for monitoring to best manage risk?

  • To monitor only key risk indicators (KRIs)
  • To monitor a broad enough scope to provide a reasonable view of the risk environment (correct)
  • To rely on periodic assessments and testing
  • To monitor only a limited scope of data
  • What does a key performance indicator (KPI) measure?

    <p>How well the process is performing in enabling the goal to be reached</p> Signup and view all the answers

    What can greatly improve the process of continuous monitoring?

    <p>Identification and use of key risk indicators (KRIs) and key performance indicators (KPIs)</p> Signup and view all the answers

    What is a subset of risk indicators that are highly relevant and possess a high probability of predicting or indicating important risk?

    <p>Key risk indicators (KRIs)</p> Signup and view all the answers

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