Exam CISM topic 1 question 522 discussion

A. are mapped to core strategic initiatives Key risk indicators (KRIs) are metrics that are used to measure the likelihood and potential impact of specific risks to an organization. They are most effective when they are mapped to the organization's core strategic initiatives, as this allows the organization to understand how the identified risks may impact its ability to achieve its goals. This information can then be used to prioritize risk management efforts and to make informed decisions about how to mitigate or manage those risks. While comparison with industry peers, redefining the KRIs on a regular basis, or assessing progress toward declared goals can also provide valuable insights, but these are secondary compared to the first one.

KRI is with the company already, how can you map a risk indicator you already have to something you are going to initiate for example: acquisition or merger? It needs to be redefined and retuned on periodic basis for maximum efficiency.

Option A

It's close between A and D but D just edges it

A. are mapped to core strategic initiatives.

Risk always needs reassessment, like wise KRI needs redefine based on the risk environment changes.

A. are mapped to core strategic initiatives

ChatGPT answers both A and D but A makes more sense, you monitor the KRI's to achieve strategic goals KRIs are MOST effective when they are mapped to core strategic initiatives. This helps ensure that the KRIs are aligned with the organization's goals and objectives, and that the risks being monitored are relevant to the organization's strategic direction. By mapping KRIs to core strategic initiatives, organizations can better prioritize their risk management efforts and make informed decisions on how to allocate resources to manage risks. Additionally, aligning KRIs with strategic initiatives can help organizations identify emerging risks and proactively take steps to address them before they become major issues.

Assessing regularly doesn't mean they are effective

Key risk indicators (KRIs) are MOST effective when they assess progress toward declared goals. KRIs are specific metrics that are used to monitor and measure the level of risk associated with a particular business process or operation. They are often used to identify and flag potential problems before they become actual risks. To be effective, KRIs should be designed to align with the organization's goals and objectives and provide a clear and concise picture of the risk landscape. By monitoring KRIs regularly, an organization can quickly identify trends and patterns that indicate a potential risk and take appropriate actions to mitigate it.

I guess C