CRISC Reviews Questions

According to the definition of key control indicators (KCIs), they are metrics that provide information on the extent to which a given control is meeting its intended objectives in terms of loss prevention, reduction, etc.1 Therefore, option D is the correct answer, as it reflects the purpose and function of KCIs. The other options are not accurate descriptions of KCIs, as they do not directly relate to the performance or outcome of the control. Option A is more relevant to the efficiency or productivity of the control, not its effectiveness. Option B is more relevant to the role of key risk indicators (KRIs), which measure the level of risk exposure or potential impact of risk events2. Option C is also more related to KRIs, as they monitor changes in the likelihood or frequency of adverse events due to risk factors2.

A quantitative method provides objective metrics to establish impact levels, which is essential for tiering assets based on their criticality. This aligns with Risk Assessment Best Practices.

Ensuring segregation of duties are implemented within key systems or processes is the best strategy employed by risk management to prevent internal fraud, because it reduces the opportunity for a single person to manipulate or misuse the system or process for fraudulent purposes. Segregation of duties is a control that assigns different roles and responsibilities to different individuals, such that no one person can perform all the steps of a transaction or process. Requiring control owners to conduct an annual control certification, conducting regular internal and external audits on the systems supporting financial reporting, and requiring the information security officer to review unresolved incidents are all useful strategies to detect or deter internal fraud, but they are not the best strategy to prevent it, as they do not directly address the root cause of fraud. References = Risk and Information Systems Control Study Manual, Chapter 5, Section 5.3.1, page 197