Which term is a forward-looking signal used to prompt early mitigations before problems occur?

Prepare for the ISACA IT Risk Fundamentals Test. Find flashcards and multiple choice questions, complete with hints and explanations. Ace your exam with confidence!

Multiple Choice

Which term is a forward-looking signal used to prompt early mitigations before problems occur?

Explanation:
Lead risk indicators are forward-looking signals that prompt early mitigations before problems occur. They forecast where risk may materialize and trigger proactive actions, such as increasing monitoring, tightening controls, or addressing vulnerabilities before an incident happens. Lag risk indicators, in contrast, show outcomes after the event and don’t help prevent issues. KPIs measure performance and aren’t inherently risk signals, and a risk register is simply a log of identified risks and planned responses, not predictive signals.

Lead risk indicators are forward-looking signals that prompt early mitigations before problems occur. They forecast where risk may materialize and trigger proactive actions, such as increasing monitoring, tightening controls, or addressing vulnerabilities before an incident happens. Lag risk indicators, in contrast, show outcomes after the event and don’t help prevent issues. KPIs measure performance and aren’t inherently risk signals, and a risk register is simply a log of identified risks and planned responses, not predictive signals.

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