mediumMultiple ChoiceObjective-mapped
CRISC Practice Question: Has implemented a new key risk indicator (KRI)…
An organization has implemented a new key risk indicator (KRI) for vendor management that measures the percentage of vendors without a signed contract. The current value is 15%, exceeding the risk appetite threshold of 10%. The risk owner wants to know the most appropriate action to take based on this KRI. What should the risk practitioner recommend?
⚠ Common exam trap
Many candidates confuse monitoring actions (like increasing reporting frequency) with risk response actions, or they mistakenly believe that adjusting the threshold to match the current value is a valid risk treatment instead of recognizing it as risk acceptance without proper analysis.
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
✓
Analyze the root cause of the high percentage and develop a remediation plan.
When a KRI exceeds the risk appetite threshold, the immediate priority is to understand why the breach occurred and to implement corrective actions. Analyzing the root cause and developing a remediation plan directly addresses the underlying issue—vendors without signed contracts—rather than merely monitoring or adjusting thresholds. This aligns with the CRISC principle that KRIs are leading indicators that should trigger risk response, not just reporting changes.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Increase the frequency of KRI reporting from monthly to weekly to monitor the trend.
Why it's wrong here
More frequent reporting without action does not reduce the risk.
- ✗
Update the risk appetite threshold to 15% to align with the current value.
Why it's wrong here
This would ignore the risk and is not a proper response.
- ✗
Immediately communicate the KRI breach to the board of directors.
Why it's wrong here
While escalation may be needed, analysis and remediation should come first.
- ✓
Analyze the root cause of the high percentage and develop a remediation plan.
Why this is correct
Root cause analysis and remediation are the correct first steps when a KRI exceeds threshold.
Go deeper
Related to this question
About these practice questions
Courseiva writes every CRISC question from scratch — 983 in total, each with an explanation and a wrong-answer breakdown. None are copied from real exams or dumps. Learn why practice questions differ from exam dumps →
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CRISC practice question is part of Courseiva's free ISACA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CRISC exam.