Organizations use key risk indicators $($KRIs$)$ to plan for and respond to risk. Which one of the following statements is correct with respect to KRIs?

Select one:

A$.$ An organization$$s risk criteria, predefined tolerance ranges that measure variances from expected outcomes, are based on risk thresholds.

B$.$ A KRI can reveal an upward trend in the level of a risk that, if it continues, will exceed the designated risk threshold for that risk.

C$.$ Risk criteria relating to an organization$$s strategic risks generally do not serve as the bases for KRIs, which tend to be operational in focus.

D$.$ KRIs are effective internal indicators of changes such as budget variances; however they are not effective external indicators.