easy · Frm Part 2 Operational Risk
According to institutional best practices, what is the required relationship between KRIs and the Risk and Control Self-Assessment (RCSA)?
- KRIs are only necessary if the RCSA results show all risks are 'Green'.
- A Red KRI breach should automatically result in the immediate deletion of the associated RCSA.
- KRIs should be used to independently validate or challenge the subjective scores provided in the RCSA.
- The RCSA and KRIs should never be compared, as one is qualitative and the other is quantitative.
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