Certification in Risk Management Assurance (CRMA) Practice Exam 2025 - Free CRMA Practice Questions and Study Guide

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What are key risk indicators (KRIs)?

Metrics used to track employee performance

Measures for evaluating financial performance

Metrics used to indicate potential risks and monitor risk levels

Key risk indicators (KRIs) are metrics specifically designed to highlight potential risks within an organization. They serve as early warning signals, allowing businesses to identify and monitor risk levels before they escalate into significant issues. By tracking these indicators, organizations can focus on areas where risks are most likely to occur, enabling proactive risk management and timely intervention.

For instance, if a KRI indicates an upward trend in incident reports within a department, this may prompt a review of processes or training programs to mitigate the underlying issues. The objective of KRIs is to provide actionable insights that aid decision-makers and enhance the overall risk management framework.

The other options do not align with the definition of KRIs. Metrics used to track employee performance focus on workforce productivity and efficiency rather than risk levels. Measures for evaluating financial performance center on the financial health and outcomes of the organization, which is a separate focus from risk monitoring. Investigative tools for assessing compliance are primarily concerned with adherence to laws and regulations, not specifically with the broader scope of risk identification and monitoring.

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Investigative tools for assessing compliance

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