Establishing Key Risk Indicators (KRIs)

Key Risk Indicators are specific, measurable metrics that signal increasing or decreasing levels of risk in a particular area. They provide an early warning system, helping organisations act before risks materialise into incidents. Good KRIs share certain characteristics:

• Relevant – Directly linked to priority risks and organisational objectives.
• Measurable – Based on reliable, accurate, and consistent data sources.
• Predictive – Able to highlight potential problems in advance, rather than simply reporting on past events.
• Actionable – When thresholds are exceeded, they prompt timely review and corrective action.

Best practices for using KRIs include setting clear thresholds or trigger points for each indicator that require investigation or intervention, reviewing KRIs regularly to ensure they remain relevant to changing business conditions, and integrating KRI tracking into dashboards or reporting tools so decision-makers have up-to-date visibility.

With well-designed KRIs, organisations can move from reactive crisis management to proactive risk management. The next step is to formalise findings and actions through structured, periodic reviews.