Section: Volume D

Section: Volume D
Explanation:
For effective communication, information communicated should not inundate the recipients. All ground rules of good communication apply to communication on risk. This includes the avoidance of jargon and technical terms regarding risk because the intended audiences are generally not deeply technologically skilled. Hence use of technical terms is avoided for effective communication Incorrect Answers:
A, C, D: These all are true for effective risk communication. For effective risk communication the risk information should be clear, concise, useful and timely. Risk information must be known and understood by all the stakeholders. Information or communication should not overwhelm the recipients. This includes the avoidance of technical terms regarding risk because the intended audiences are generally not much technologically skilled.
Any communication on risk must be relevant. Technical information that is too detailed or is sent to inappropriate parties will hinder, rather than enable, a clear view of risk. For each risk, critical moments exist between its origination and its potential business consequence.
Information should also be aimed at the correct target audience and available on need-to-know basis. Hence for effective risk communication risk information should be:
* Clear
* Concise
* Useful
* Timely given
* Aimed at the correct audience
* Available on need-to-know basis

Section: Volume C
Explanation:
Key Risk Indicators are the prime monitoring indicators of the enterprise. KRIs are highly relevant and possess a high probability of predicting or indicating important risk. KRIs help in avoiding excessively large number of risk indicators to manage and report that a large enterprise may have.
Incorrect Answers:
B: Lag indicators are the risk indicators that is used to indicate risk after events have occurred.
C: Lead indicators are the risk indicators that is used to indicate which capabilities are in place to prevent events from occurring.
D: Risk indicators are metrics used to indicate risk thresholds, i.e., it gives indication when a risk level is approaching a high or unacceptable level of risk. The main objective of a risk indicator is to ensure tracking and reporting mechanisms that alert staff about the potential risks.

Section: Volume D
Explanation