Which type of indicator informs management of the risk levels associated with various processes?

Key Risk Indicators (KRIs) are metrics designed to provide insight into the potential risks that could impact an organization's objectives. These indicators are specifically tailored to help management understand the risk levels associated with various processes within the organization. By monitoring KRIs, management can proactively identify and address potential risks before they escalate into significant issues.

KRIs often correlate with an organization's risk appetite and tolerance levels, allowing for more informed decision-making and risk management strategies. They can help in assessing the efficacy of existing controls and identifying areas that may require additional attention or resources.

In contrast, the other options serve different purposes. Key Performance Indicators (KPIs) focus on measuring how effectively an organization is achieving its key business objectives, rather than specifically targeting risk assessment. A Risk Register is a tool used to document identified risks and include information about those risks, such as their impact and mitigation strategies, but it does not provide real-time indicators of risk levels. Auditing requirements refer to the guidelines and standards for conducting audits, which do not directly measure or inform management about risk levels associated with processes.