Which of the following best describes a key risk indicator (KRI)?

A key risk indicator (KRI) is best described as highly relevant predictors of risk. This definition captures the essence of KRIs, which are used to signal potential threats to an organization’s objectives. KRIs help organizations monitor and identify areas of potential concern before they result in significant issues, allowing for proactive management of risk.

In contrast, while a quantitative measure of risk events is an important aspect of risk management, it doesn't fully encompass what KRIs represent. KRIs are not solely about quantifying incidents, but rather about identifying risk trends and indicators that can predict future risk scenarios.

Techniques for risk assessment generally refer to methodologies used to evaluate an organization's risk exposure and may involve numerous tools and approaches, but they do not specifically define KRIs.

Lastly, a tool for data encryption pertains to cybersecurity measures used to protect information, and it does not relate to the concept of KRIs or their role in risk management. Understanding KRIs and their predictive nature is crucial for effective risk management strategies within any organization.