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CRISC Practice Question: Which TWO of the following are characteristics of…
Which TWO of the following are characteristics of an effective key risk indicator (KRI)?
⚠ Common exam trap
The CRISC exam often tests the misconception that KRIs are merely historical metrics, but the trap here is confusing lagging indicators (based on past data) with leading indicators (predictive), causing candidates to incorrectly select 'Based on historical data only' as a valid characteristic.
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
✓
Predictive in nature.
An effective KRI must be predictive in nature because it provides early warning signs of increasing risk exposure before a loss event occurs. Predictive KRIs allow risk owners to take proactive mitigating actions, whereas lagging indicators only confirm past failures. This forward-looking characteristic is essential for risk monitoring and timely decision-making.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Based on historical data only.
Why it's wrong here
KRIs should also consider forward-looking elements.
- ✓
Predictive in nature.
Why this is correct
A predictive KRI provides early warning of increasing risk.
- ✓
Quantifiable.
Why this is correct
Quantifiability ensures objective measurement and comparison.
- ✗
Static.
Why it's wrong here
KRIs should be reviewed and updated as the risk environment changes.
- ✗
Subjective.
Why it's wrong here
Subjectivity reduces reliability and comparability.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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