What is the primary reason for periodically monitoring key risk indicators (KRIs)?

Periodically monitoring key risk indicators (KRIs) is essential because the organization's risk profile may change over time due to various internal and external factors. These factors could include shifts in the business environment, changes in regulations, emerging threats, modifications in operational processes, or evolving technologies. By continuously monitoring KRIs, organizations can identify these changes and assess their impact on overall risk exposure, allowing for more informed decision-making and timely adjustments to risk management strategies. This proactive approach helps in maintaining a comprehensive understanding of the risk landscape, ensuring that the organization remains prepared to address potential risks effectively.

Monitoring KRIs not only aids in detecting changes in risk but also ensures that an organization's responses to those risks remain relevant and effective as circumstances evolve. This adaptability is critical for sustaining an organization's resilience against potential threats and achieving its strategic objectives.