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Exam CRISC topic 1 question 904 discussion

Actual exam question from Isaca's CRISC
Question #: 904
Topic #: 1
[All CRISC Questions]

Which of the following statements BEST illustrates the relationship between key performance indicators (KPIs) and key control indicators (KCIs)?

  • A. KPIs measure manual controls, while KCIs measure automated controls.
  • B. KPIs and KCIs both contribute to understanding of control effectiveness.
  • C. KCIs are applied at the operational level, while KPIs are at the strategic level.
  • D. A robust KCI program will replace the need to measure KPIs.
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Suggested Answer: C 🗳️

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boyladdudeman
Highly Voted 3 years ago
C: KPIs are majorly used to monitor business performance targets whereas KCI are used to monitor the effectiveness of controls. Senior management are predominately interested in KPIs whereas KCI is generally used at operational level for monitoring the control effectiveness
upvoted 7 times
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cyberbugnx
Most Recent 3 months, 3 weeks ago
Selected Answer: B
B. KPIs and KCIs both contribute to understanding of control effectiveness.
upvoted 1 times
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SuperMax
1 year, 3 months ago
Selected Answer: B
B. KPIs and KCIs both contribute to understanding of control effectiveness. The relationship between Key Performance Indicators (KPIs) and Key Control Indicators (KCIs) is that they both contribute to the understanding of control effectiveness. KPIs are generally broader metrics that assess overall performance and success in achieving strategic objectives, while KCIs are more specific indicators that focus on the effectiveness of controls put in place to manage risks. KPIs help measure the overall success of an organization, while KCIs provide insight into the performance of specific controls that are in place to mitigate risks. Both KPIs and KCIs are valuable for assessing and managing the effectiveness of an organization's risk management and control processes.
upvoted 1 times
SuperMax
1 year, 3 months ago
Option C implies a distinction in terms of levels (operational for KCIs and strategic for KPIs), but this is not necessarily accurate. The distinction between KPIs and KCIs is more about their nature and purpose rather than the specific level at which they are applied. Key Performance Indicators (KPIs) are typically broader metrics that assess the overall performance and success of an organization in achieving its strategic objectives. They are often used at various levels of an organization, including both operational and strategic levels. Key Control Indicators (KCIs), on the other hand, are more focused on monitoring specific controls and processes that are in place to manage risks. While they may be applied operationally, they can also be relevant at the strategic level, especially when assessing the effectiveness of high-level controls in achieving strategic goals. So, while there can be overlap, the distinction between KPIs and KCIs is not primarily based on the operational or strategic level but rather on the nature of the metrics and their specific focus.
upvoted 2 times
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01010100
1 year, 5 months ago
Selected Answer: B
B. KPIs and KCIs both contribute to understanding of control effectiveness. KPIs (Key Performance Indicators) measure the performance of processes in achieving their objectives, while KCIs (Key Control Indicators) measure the effectiveness or performance of controls. Both KPIs and KCIs contribute to an understanding of how well controls are operating and how well processes are performing against their objectives. Hence, they both play a role in assessing the effectiveness of controls and processes within an organization.
upvoted 1 times
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CbtL
1 year, 11 months ago
Selected Answer: C
Going with C.
upvoted 1 times
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Koulyo
1 year, 11 months ago
Going with B: Option B. KPIs and KCIs both contribute to understanding of control effectiveness is the best statement that illustrates the relationship between key performance indicators (KPIs) and key control indicators (KCIs). KPIs are metrics that help measure the performance of an organization's overall objectives, while KCIs are metrics used to measure the effectiveness of controls in mitigating risks. Both KPIs and KCIs contribute to understanding control effectiveness by providing insights into how well an organization is achieving its objectives and managing risks. KPIs can help identify areas where controls are not effective, while KCIs can help pinpoint specific controls that are not working as intended. Together, KPIs and KCIs provide a comprehensive view of an organization's risk management and control environment.
upvoted 1 times
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john_boogieman
2 years ago
Selected Answer: C
Agree.
upvoted 2 times
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Thuylt12
2 years, 2 months ago
C is correct
upvoted 2 times
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Raj1510
3 years, 1 month ago
KCIs contribute to understanding of control effectiveness. KPIs help in predicating whether organizational goal will be reached and indicates the capabilities, practices and skills of value to the organization. I think C is right answer
upvoted 3 times
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