The most important thing to the effectiveness of key performance indicators (KPIs) is relevance. This means that the KPIs should be aligned with the organization's goals and objectives, and they should be able to measure the progress that is being made towards those goals
KRI effectiveness takes into consideration the following criteria:
• Impact—Indicators of risk with high business impact are more likely to be KRIs.
• Effort—For different indicators that are equivalent in sensitivity, the one that is easier to measure and maintain is preferred.
• Reliability—The indicator must possess a high correlation with the risk and be a good predictor or outcome measure.
• Sensitivity—The indicator must be representative of risk and capable of accurately indicating risk variances.
• Repeatable—A KRI must be repeatable and able to be measured on a regular basis to show trends and patterns in activity and results.
KRI optimization: Sensitivity Management has implemented an automated tool to analyze and report on access control logs based on severity, and the tool generates an excessive number of results. Management performs a risk assessment and decides to configure the monitoring tool to report only on alerts marked “critical.”
Relevant - Directly related to a specific activity or goal. Source: Page 154 ISACA CRISC Review Manual 6th Edition. I could not find "Automation" in that section.
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