What are risk indicators?

Risk indicators serve as metrics that quantify or assess levels of risk exposure within various contexts, such as businesses, projects, or financial systems. They provide insight into potential vulnerabilities and can aid in identifying trends that may signal changes in risk levels over time. By measuring and tracking these indicators, organizations can make informed decisions for risk management, prioritize resource allocation, and implement effective strategies to mitigate potential threats.

The other options do not accurately define risk indicators. While statistics related to risk severity and reports of past assessments may be useful in understanding risk, they do not encapsulate the concept of measuring current risk levels. Similarly, documents focused on regulatory compliance are related to adherence to laws and standards, rather than directly reflecting the dynamic assessment of risk exposure. This distinction emphasizes that the correct choice centers on ongoing evaluation and measurement of risks rather than retrospective analysis or regulatory context.