Risk is part and parcel of business and it is rare to find a business where risks are not regularly discussed and monitored. Key risk indicators (KRIs) should be an integral part of your risk framework and discussions. But what are the key risk indicators and how can you develop effective KRIs for your organization?
KRIs are indicators or metrics that are used to measure business risks. Think of KRI as an early warning system, like an alarm that goes off when the company’s risk exposure exceeds tolerable levels. In this way, KRI helps you monitor the risks and take the first steps to prevent or reduce the crisis.