what is kri

what is kri

1 year ago 68
Nature

KRI stands for Key Risk Indicator. It is a metric used by organizations to indicate how risky an activity is and to provide an early signal of increasing risk exposures in various areas of the enterprise. KRIs are different from Key Performance Indicators (KPIs) in that the latter is meant as a measure of how well something is being done while the former is an indicator of the possibility of future adverse impact. KRIs are used to identify potential events that may harm the continuity of the activity/project and are a mainstay of operational risk analysis. Organizations should choose their own KRIs, taking into account different stakeholders, a balanced selection of risk indicators, and high relevance and probability of predicting important risks. KRIs should be linked to a KPI and a strategic goal, and they should be monitored effectively to ensure that risks are identified in advance and mitigated.

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