QuestionQ1172

Risk Response and Reporting

Which of the following is the PRIMARY reason for adopting key control indicators (KCIs) as part of the risk monitoring and reporting process?

  • A To provide assurance of adherence to risk management policies
  • B To provide measurements on the potential for risk to occur
  • C To provide data for establishing the risk profile
  • D To provide assessments of mitigation effectiveness
Explanation

Key control indicators are metrics designed specifically to monitor the design, implementation, and ongoing operating performance of controls that have been put in place to mitigate risk. Their primary value in risk monitoring and reporting is to show how effectively those controls are reducing risk to acceptable levels, allowing risk practitioners to detect control degradation early and take corrective action before the underlying risk materializes. This distinguishes KCIs from key risk indicators (KRIs), which instead measure the likelihood or potential for a risk event to occur, and from broader risk profile data, which is derived through risk assessment activities rather than control monitoring.

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