Question

What are the key goal, performance, and risk indicators?

Answer 1

Answer:

KRIs are a way to quantify and monitor the biggest risks an organisation (or activity) is exposed to. By measuring the risks and their potential impact on business performance, organisations are able to create early warning systems that allow them to monitor, manage and mitigate key risks.

Effective KRIs help to:

• Identify the biggest risks.
• Quantify those risks and their impact.
• Put risks into perspective by providing comparisons and benchmarks.
• Enable regular risk reporting and risk monitoring.
• Alert key people in advance of risks unfolding.
• Help people to manage and mitigate risks.

While KPIs help organisations understand how well they are doing in relation to their strategic plans, KRIs help them understand the risks involved and the likelihood of not delivering good outcomes in the future.