You are the project manager of HJT project. You want to measure the operational effectiveness of
risk management capabilities. Which of the following is the BEST option to measure the
operational effectiveness?
A.
Key risk indicators
B.
Capability maturity models
C.
Key performance indicators
D.
Metric thresholds
Explanation:
Key performance indicators are a set of quantifiable measures that a company or industry uses to
gauge or compare performance in terms of meeting their strategic and operational goals. Key
performance indicators (KPIs) provide insights into the operational effectiveness of the concept or
capability that they monitor.
Answer A is incorrect. Key risk Indicators (KRIs) only provide insights into potential risks that may
exist or be realized within a concept or capability that they monitor.
Answer B is incorrect. Capability maturity models (CMMs) assess the maturity of a concept or
capability and do not provide insights into operational effectiveness.
Answer D is incorrect. Metric thresholds are decision or action points that are enacted when a KPI
or KRI reports a specific value or set of values.