Which of the following should be the PRIMARY governance objective for selecting key risk indicators (KRIs) related to legal and regulatory compliance?
Correct Answer: A
Key risk indicators (KRIs) are metrics that measure the likelihood and impact of potential or actual risks. KRIs related to legal and regulatory compliance are designed to help the enterprise monitor and manage the risk of violating laws, regulations, standards, or ethical practices that apply to its operating environment. The primary governance objective for selecting KRIs related to legal and regulatory compliance should be to identify the risk of noncompliance, which means assessing the probability and severity of compliance breaches, as well as the root causes and consequences of such breaches. By identifying the risk of noncompliance, the enterprise can take proactive measures to prevent, mitigate, or remediate compliance issues, and to ensure that its compliance program is effective, efficient, and aligned with its business objectives and strategies. References:
CGEIT Exam Content Outline | ISACA1, CGEIT Review Manual (Digital Version), Compliance Metrics and KPIs For Measuring Compliance Effectiveness - RiskOptics2, 11 Key Compliance KPIs + Examples (& Why You Should Track Them ...3