Which of the following terms is described in the statement below? "They are the prime monitoring indicators of the enterprise, and are highly relevant and possess a high probability of predicting or indicating important risk." 

Answer options:

A. Key risk indicators
B. Lag indicators
C. Lead indicators
D. Risk indicators

A

Key Risk Indicators are the prime monitoring indicators of the enterprise. KRIs are highly relevant and possess a high probability of predicting or indicating important risk. KRIs help in avoiding excessively large number of risk indicators to manage and report that a large enterprise may have. Incorrect Answers: B: Lag indicators are the risk indicators that is used to indicate risk after events have occurred. C: Lead indicators are the risk indicators that is used to indicate which capabilities are in place to prevent events from occurring. D: Risk indicators are metrics used to indicate risk thresholds, i.e., it gives indication when a risk level is approaching a high or unacceptable level of risk. The main objective of a risk indicator is to ensure tracking and reporting mechanisms that alert staff about the potential risks.