Effective Set of Key Risk Indicators (KRIs)

C.

The PRIMARY purpose of an effective set of key risk indicators (KRIs) is to identify possible future adverse impacts on the enterprise (option A).

KRIs are metrics that provide insight into potential risks and their likelihood of occurrence. They serve as an early warning system for identifying potential risks, so that corrective action can be taken before the risks become actualized and result in negative consequences for the enterprise. KRIs provide information about the current state of risk in an organization, enabling decision-makers to take actions to mitigate or manage risk.

Option B, evaluating existing technology for risk monitoring capabilities, is not the primary purpose of KRIs. While technology can certainly play a role in risk monitoring, KRIs are focused on identifying risks, not evaluating technology.

Option C, establishing executive level buy-in of the risk program, is also not the primary purpose of KRIs. While executive buy-in is important for effective risk management, KRIs are designed to identify and monitor risks, not to convince executives to support risk management efforts.

Option D, quantifying the productivity of the risk management team, is also not the primary purpose of KRIs. While measuring the productivity of the risk management team is important, KRIs are designed to identify and monitor risks, not to measure the effectiveness of the risk management team.

In summary, the primary purpose of an effective set of key risk indicators (KRIs) is to identify possible future adverse impacts on the enterprise, enabling decision-makers to take actions to mitigate or manage risk.