Business Key Risk Indicators

It s important to set key risk indicators in the pursuit of achieving business goals.

Business key risk indicators. Everything depends upon the business context business objectives. Key risk indicators defined key risk indicators kris are an important tool within risk management and are used to enhance the monitoring and mitigation of risks and facilitate risk reporting. What constitutes a key risk for one business may not be important for another.

Losing your key employee might be a threat on the one hand but on the other hand you might find a new one that will bring to your company new skills and ideas. While key risk indicators don t cover every single type of risk your business could face it focuses on the main or key concerns. Instead they focus on the most critical indicators for managing the highest risks and these will vary from business to business in line with the company s objectives and priorities.

Kris aren t about monitoring every single risk facing the business. To business lines managers they may help to signal a change in the level of risk exposure associated with specific processes and activities. They signal potential risks from internal operations of the organization or those from external events such as macroeconomic imbalances that have a bearing on the demand for the entity s products or services.

On the other hand key risk indicators kris provide timely leading indicator information about new emerging risks. Recent big headline data breaches of. Key risk indicators kris are useful tools for business lines managers senior management and boards to help monitor the level of risk taking in an activity or an organisation.

A comprehensive list and library of key risk indicators with definitions for information technology and information security technology risk in modern day business can be seen in news headlines on a daily basis. Risk indicators in an operational risk context a risk indicator commonly known as a key risk indicator or kri is a metric that provides information on the level of exposure to a given operational risk which the organisation has at a particular point in time. Data breaches from large corporations can drive stock prices down by 30 50 in one trading day.

On the other side of the same coin sits key risk indicators or kris. Operational risk is defined as the risk of loss resulting from inadequate or failed internal processes people and systems or external events. As their name states kris are indicators that are key for the risk management process.