QuestionQ1022

Risk Assessment

Which of the following is MOST likely to result in a key risk indicator (KRI) exceeding its thresholds?

  • A Risk scenarios
  • B The risk tolerance level
  • C A performance measurement
  • D Occurrences of specific events
Explanation

A KRI measures exposure to a specific risk and provides an early warning of increased risk. Occurrences of the defined risk-related events raise the indicator’s measured value and can breach its threshold; risk tolerance sets the threshold, while performance measurements address performance rather than risk exposure.

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