Which metric is primarily used by an organization to foresee potential adverse impacts on its objectives, thereby allowing proactive risk management?
Risk Assessment Matrix Levels
Compliance Adherence Scores
Control Efficiency Metrics
Key Risk Indicators
Risk Appetite Statements
Key Risk Indicators (KRIs) are proactive metrics that enable an organization to anticipate and manage risks before they fully develop. They are distinct from Key Performance Indicators (KPIs), which measure performance against goals, and from Risk Thresholds, which are the levels of risk exposure that an organization has determined as acceptable or unacceptable. Unlike Risk Scores or Control Metrics which assess existing risks or the effectiveness of controls, KRIs are forward-looking indicators.
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