Key risk indicators (KRIs) are metrics that help organizations monitor and evaluate the level of risk they are exposed to. They provide early warning signals of potential issues that could affect the achievement of organizational goals12.

The most important data source for monitoring KRIs is automated logs collected from different systems, which are records that capture and store the details and history of the transactions or activities that are performed by the organization’s processes, systems, or controls34.

Automated logs collected from different systems are the most important data source because they provide timely and accurate data and information on the performance and status of the organization’s operations, and enable the detection and reporting of any deviations, anomalies, or issues that may indicate a risk event34.

Automated logs collected from different systems are also the most important data source because they support the accountability and auditability of the organization’s operations, and facilitate the investigation and resolution of any risk event34.

The other options are not the most important data sources, but rather possible inputs or factors that may influence or affect the KRIs. For example:

Directives from legal and regulatory authorities are documents that provide the expectations and obligations of the external authorities or bodies that govern or oversee the organization’s activities and operations, such as laws, regulations, standards, or contracts5 . However, these documents are not the most important data source becausethey do not directly measure or monitor the level of risk exposure, but rather provide the criteria or framework for risk compliance5 .

Audit reports from internal information systems audits are documents that provide the findings and recommendations of the independent and objective assessment of the adequacy and effectiveness of the organization’s information systems, processes, and controls . However, these documents are not the most important data source because they do not directly measure or monitor the level of risk exposure, but rather provide the assurance or improvement for risk management .

Trend analysis of external risk factors is a technique that involves analyzing and forecasting the changes and impacts of the external factors that influence the organization’s operations, such as technology, competition, regulation, or customer behavior . However, this technique is not themost important data source because it does not directly measure or monitor the level of risk exposure, but rather provide the insight or prediction for risk identification . References =

1: Key Risk Indicators: A Practical Guide | SafetyCulture1

2: Key risk indicator - Wikipedia2

3: Database Activity Monitoring - Wikipedia3

4: Database Activity Monitoring (DAM) | Imperva4

5: Regulatory Compliance - Wikipedia5

Regulatory Compliance Management Software | MetricStream

IT Audit and Assurance Standards, ISACA, 2014

IT Audit and Assurance Guidelines, ISACA, 2014

Trend Analysis - Investopedia

Trend Analysis: A Definition and Examples