Society For Human Resource Management (SHRM) Certified Professional Practice Exam

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Study for the SHRM Certified Professional Exam with flashcards and multiple choice questions. Each question includes hints and explanations to help you understand key HR concepts. Prepare for your certification with confidence!

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An identified risk in an enterprise may be called a:

Key risk indicator
Analysis fault
Danger condition
Barrier to entry

The correct answer is: Key risk indicator

An identified risk in an enterprise is often referred to as a key risk indicator (KRI). KRIs are essential metrics used by organizations to provide an early signal of increasing risk exposures in various areas of the business. They help organizations monitor risk profiles and ensure that they are within acceptable limits. By tracking these indicators, businesses can proactively manage risks, make informed decisions, and implement strategies to mitigate potential adverse effects. The other options do not accurately depict the concept of an identified risk within an enterprise context. An analysis fault does not represent a recognized term related to risk management. A danger condition, while it may suggest a state of risk, lacks the structured metric or indicator context provided by KRIs. A barrier to entry refers to obstacles that make it difficult for new competitors to enter a market and does not pertain to risk identification within an organization. Therefore, the term key risk indicator is the most suitable description for identified risks in an enterprise.