A global financial service company wants to improve its measurement of risk as it moves into more uncertain market risk trading activities. The Chief Risk Officer advises that Historical Daily Profit, and Value-at-Risk, are both Key Risk Indicators of market risk.

Which of the following statements is TRUE?

a.Only 'Value-at-Risk' is a Key Risk Indicator because it is a leading indicator.

b.Both are measures of financial market risk and are therefore equivalent Key Risk Indicators.

c.'Value-at-Risk' is a measure of financial consequence and is therefore not a Key Risk Indicator.

d.Only 'Historical Daily Profit' is a Key Risk Indicator because it is a factual measure of risk.