Which of the following are the common mistakes while implementing KRIs?
Each correct answer represents a complete solution. Choose three.
A.
Choosing KRIs that are difficult to measure
B.
Choosing KRIs that has high correlation with the risk
C.
Choosing KRIs that are incomplete or inaccurate due to unclear specifications
D.
Choosing KRIs that are not linked to specific risk
Explanation:
A common mistake when implementing KRIs other than selecting too many KRIs includes
choosing KRIs that are:
Not linked to specific risk
Incomplete or inaccurate due to unclear specifications
Too generic
Difficult to aggregate, compare and interpret
Difficult to measure
Answer B is incorrect. For ensuring high reliability of the KRI, The indicator must possess a high
correlation with the risk and be a good predictor or outcome measure. Hence KRIs are chosen that
has high correlation with the risk.