Which of the following is NOT a purpose of key risk indicators (KRIs)?

Key risk indicators (KRIs) serve as essential tools in risk management, focusing primarily on the identification and measurement of risks that an organization may face. The purpose of KRIs is to provide insights into potential future risk conditions, allowing organizations to take proactive measures.

Tracking past risk events is a valuable function because it allows organizations to learn from previous incidents, thus enabling them to refine their risk management strategies. Predicting future risk occurrences is fundamental as KRIs help forecast potential risks based on specific metrics, while improving strategic decision-making is another crucial purpose because these indicators furnish management with data that informs their strategic choices.

Ensuring compliance with regulatory standards is more so related to meeting external requirements rather than an inherent purpose of KRIs themselves. While compliance can be influenced by the insights provided by KRIs, the primary focus of KRIs is on risk management rather than compliance monitoring. Hence, it stands out as the choice that does not align with the core purposes of KRIs.