Risk threshold exceptions are instances when a KRI exceeds or falls below a predefined level or point that triggers an action or a warning. An increase in the number of risk threshold exceptions indicates that the KRIs are not reflecting the current risk exposure or environment accurately oreffectively. This may suggest that the KRIs are outdated, irrelevant, or poorly defined. Therefore, the KRIs should be revised to ensure that they are aligned with the organizational objectives, risk appetite, and risk management strategy.
References
*Key Risk Indicators: A Practical Guide | SafetyCulture
*Key Risk Indicators: Examples & Definitions - SolveXia
*Choosing and Using Key Risk Indicators - Institute of Risk Management