Which of the following is NOT true for Key Risk Indicators? 

Answer options:

A. They are selected as the prime monitoring indicators for the enterprise
B. They help avoid having to manage and report on an excessively large number of risk indicators
C. The complete set of KRIs should also balance indicators for risk, root causes and business impact.
D. They are monitored annually

D

They are monitored on regular basis as they indicate high probability and high impact risks. As risks change over time, hence KRIs should also be monitored regularly for its effectiveness on these changing risks. Incorrect Answers: A, B, C: These all are true for KRIs. 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. The complete set of KRIs should also balance indicators for risk, root causes and business impact, so as to indicate the risk and its impact completely.