Identify each statement as TRUE or FALSE:

$(4$ marks total; $1$ mark for a correct response; no marks for an incorrect response or no response$)$

Leading indicators measure the effective implementation of controls that manage risks.

Answer $1$ Question $3$

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With effective controls in place, as measured by the leading indicators, risks are managed and a loss incident is avoided.

Answer $2$ Question $3$

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In contrast, when controls are not effective, as measured by the leading indicators, risks are not managed to an acceptable level, and a loss incident can occur.

Answer $3$ Question $3$

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By measuring leading indicators, the $$early signals$$ of deficiencies or inadequacies in the risk management program can be detected, and action can be taken to correct, and restore the risk levels to an acceptable level before a loss incident occurs.