What do metrics that provide an early signal of increasing risk exposures for an enterprise refer to?

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 that refers to metrics providing an early signal of increasing risk exposures for an enterprise is "Key risk indicators." These indicators are specifically designed to identify potential problems before they escalate, allowing organizations to proactively manage and mitigate risks. Key risk indicators serve as warning signs, tracking factors that may influence the likelihood of adverse events impacting the organization, such as financial instability or operational failings. By focusing on these metrics, businesses can maintain a stronger awareness of their risk landscape and take timely actions to safeguard their interests.

In contrast, key performance indicators typically measure an organization's performance and progress toward its strategic goals but are not specifically tailored to identify risk. Risk assessments evaluate the potential risks faced by an organization but do not provide ongoing monitoring signals like key risk indicators. Market indicators may provide insights into broader market trends or economic conditions but do not directly target internal risk exposures relevant to the enterprise in question.

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