The term 'key risk indicators' is best associated with what aspect of an enterprise?

Study for the SHRM US Employment Laws and Regulations Test. Use flashcards and multiple choice questions with hints and explanations. Get exam ready!

The term 'key risk indicators' (KRIs) is best associated with advanced warning of risk exposures because these indicators are essential tools used by organizations to identify and measure risks that could potentially impact their objectives. KRIs help in monitoring and assessing the likelihood or impact of various risk factors, enabling proactive management. By analyzing specific metrics, organizations can detect early signs of potential risks, allowing them to take timely actions to mitigate adverse impacts.

While the other choices represent important aspects of enterprise management, they do not directly relate to the core function of key risk indicators. Employee performance metrics measure individual or team effectiveness, financial forecasting involves predicting future financial outcomes, and market trend analysis focuses on competitive positioning and market behavior. In contrast, KRIs specifically target the identification and monitoring of risk, making them integral to an organization's risk management framework.

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