What type of data is most useful for conveying enterprise risk to management?

Key risk indicators (KRIs) are the most useful type of data for conveying enterprise risk to management because they provide early warning signals about potential risks that could impact the organization's objectives. KRIs are measurable values that indicate how much risk is present in various aspects of the enterprise, enabling proactive risk management and decision-making.

Management can use KRIs to assess the likelihood and impact of different risks, allowing for timely adjustments to strategy and operations. Because KRIs are often linked to specific risk thresholds, they can help in monitoring trends over time, which facilitates a clearer understanding of the current risk landscape. Their focus on predictive elements makes them more actionable for management than other forms of reporting.

In contrast, while control self-assessment results might help evaluate the effectiveness of controls, they do not provide the same predictive capabilities regarding emerging risks. A controls inventory lists existing controls but lacks the dynamic aspect of risk that KRIs offer. Independent audit reports can provide valuable insights into compliance and effectiveness but are often retrospective and may not help in anticipating future risks or trends. Therefore, KRIs stand out as the most effective tool for management to monitor and respond to enterprise risks.