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CRISC Practice Question: A retail company monitors its key risk indicator…
A retail company monitors its key risk indicator (KRI) for credit card transaction fraud. The KRI has exceeded the established threshold for three consecutive days, but the weekly control performance report shows all fraud detection controls operating effectively. What should the risk practitioner do FIRST?
⚠ Common exam trap
Many candidates assume a KRI breach always indicates a control failure, leading them to immediately enhance controls or adjust thresholds, rather than first verifying the data integrity of the KRI itself.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Investigate the data source of the KRI to ensure accuracy and timeliness.
The KRI breach may be caused by data inaccuracies or delays in the data feed, not by an actual increase in fraud. Investigating the data source ensures the KRI is reliable before taking any further action, aligning with the principle of validating monitoring data before making control decisions.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Immediately enhance the fraud detection controls.
Why it's wrong here
Controls appear effective per reports; enhancement is premature.
- ✗
Report the KRI breach to the board and recommend risk acceptance.
Why it's wrong here
Boards expect analysis before risk acceptance.
- ✗
Adjust the KRI threshold to align with current control performance.
Why it's wrong here
Adjusting thresholds without investigation may hide a genuine risk.
- ✓
Investigate the data source of the KRI to ensure accuracy and timeliness.
Why this is correct
Verifying data integrity is the logical first step before any other action.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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