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ISACA Certified in Risk and Information Systems Control · Isaca
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B. The KRI threshold needs to be revised to better align with the organization's risk appetite. If a key risk indicator (KRI) is consistently reported as exceeding thresholds, but senior management takes no action to reduce the risk, it's likely that the KRI threshold is not appropriately aligned with the organization's risk appetite. In such cases, the KRI thresholds may be set too conservatively, leading to frequent alerts that do not represent risks that are significant or unacceptable to the organization. Senior management should periodically review and adjust KRI thresholds to ensure that they reflect the organization's true risk tolerance. This allows KRIs to provide meaningful insights into risks that genuinely require attention and action. Therefore, revising the KRI thresholds to better align with the organization's risk appetite is the most likely reason for senior management's response in this scenario.
Agree it is B.
Agree.