QuestionQ217

Risk Response and Reporting

Which of the following is the BEST recommendation when a key risk indicator (KRI) generates an excessive number of events?

  • A Reevaluate the design of the KRIs.
  • B Develop a corresponding key performance indicator (KPI).
  • C Monitor KRIs within a specific timeframe.
  • D Activate the incident response plan.
Explanation

An excessive number of KRI events indicates that the indicator may be poorly calibrated or designed, such as by having thresholds that generate excessive non-actionable alerts. Reevaluating the KRI design enables its thresholds and criteria to be refined so it provides meaningful, actionable risk signals.

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