Which indicator is used to measure risk, instead of system performance?

Which indicator is used to measure risk, instead of system performance?

• A. KPI
• B. Latency
• C. KRI
• D. Benchmark

Answer: (C)

This item asks you to distinguish indicators used to monitor risk from those that track system performance. A Key Risk Indicator (KRI) signals rising risk levels or potential adverse events, helping you stay within risk appetite and trigger proactive controls. Because it measures risk exposure, it focuses on risk rather than how the system performs. A Key Performance Indicator (KPI) measures progress toward objectives and overall effectiveness, not risk signals. Latency is about delay in processing or response time, a performance measure. Benchmarking compares current performance to a standard or peers, also a performance-oriented metric. Therefore, the indicator that measures risk is the KRI, since it is designed to flag risk levels and prompt mitigation before incidents occur.

This item asks you to distinguish indicators used to monitor risk from those that track system performance. A Key Risk Indicator (KRI) signals rising risk levels or potential adverse events, helping you stay within risk appetite and trigger proactive controls. Because it measures risk exposure, it focuses on risk rather than how the system performs. A Key Performance Indicator (KPI) measures progress toward objectives and overall effectiveness, not risk signals. Latency is about delay in processing or response time, a performance measure. Benchmarking compares current performance to a standard or peers, also a performance-oriented metric. Therefore, the indicator that measures risk is the KRI, since it is designed to flag risk levels and prompt mitigation before incidents occur.