Which of the following considerations should be taken into account while selecting risk indicators
that ensures greater buy-in and ownership?

A.
Lag indicator

B.
Lead indicator

C.
Root cause

D.
Stakeholder

Explanation:

To ensure greater buy-in and ownership, risk indicators should be selected with the involvement of
relevant stakeholders. Risk indicators should be identified for all stakeholders and should not
focus solely on the more operational or strategic side of risk.
Answer B is incorrect. Lead indicators indicate which capabilities are in place to prevent events
from occurring. They do not play any role in ensuring greater buy-in and ownership.
Answer A is incorrect. Role of lag indicators is to ensure that risk after events have occurred is
being indicated.
Answer C is incorrect. Root cause is considered while selecting risk indicator but it does not
ensure greater buy-in or ownership.