medium · FRM Part 2 Operational Risk
A risk manager notes that a KRI for 'Overdue Compliance Reviews' is persistently 'Green', despite the unit being under-resourced. Upon investigation, it is found that the 'Review' is defined as a simple checkbox with no substantive check.
This is an example of failure in which KRI property?
- Predictive Validity.
- Measurability.
- Automation.
- Comparability.
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