Question

A risk manager reviews a proposed dashboard for the payment processing platform. One indicator reads 'Total number of transactions processed per day' and is flagged as a key risk indicator (KRI) with no defined threshold. The transaction team argues it is useful because volume affects everything. What is the risk manager's BEST response regarding this indicator?

Accepted Answer

Reclassify it as a business metric and, if risk monitoring is intended, redefine it as a KRI tied to a specific risk with a defined threshold, such as the rate of failed or rejected transactions

Answer

Accept it as a KRI, since high transaction volume clearly increases operational exposure across the platform

Answer

Retain it as a KRI but add a static threshold equal to the highest volume recorded in the past year

Answer

Remove the indicator entirely because transaction volume has no relationship to risk