What are Key Risk Indicators? Percentage of Applications Running without a Current Service Level Agreement – The number of applications currently running on company workstations or devices that are NOT governed by an explicit, documented service level agreement (SLA), which states the parameters and standards of service to be delivered by the application, as a percentage of all applications currently running. Risks to an organization vary based on individual work group or department. Recent big headline data breaches of customer data include; Target in 2013, Experian in 2017, and now Facebook in 2018. Mean Network Bandwidth Utilization Rate – Overall (30 Minute Intervals) – The average utilization rate (i.e., percentage of total available network bandwidth capacity being used), measured as a ratio of current network traffic to the total amount of traffic that the network, or port, being examined can handle. When implementing key risk indicators, businesses often do not have a frame of reference to begin picking the most important KRIs for their company – use the list of KRI examples below to determine what areas of information technology pose a risk to your business operations today. Managing risks is about managing the chain of: Normally, we cannot map all these aspects of the risk in one KRI, so we will normally need 3 indicators: For example, for such KRI as “Poor mentoring of employees” we would have: Which of those indicators is a KRI? One of the salient points of discussion has been the overlap between KRIs and KPIs (key performance indicators). System Availability During Trading Hours – All Systems – The amount of time (measured in minutes) that ALL systems are online and available for use during trading hours (10am-3pm, Sunday-Thursday) by all authorized users divided by the total amount of time those systems are scheduled to be available for use over the same period of time, as a percentage. KRI’s are able to assist businesses reduce loss and prevent exposure by indicating changes in risk profiles and proactively manage risk situations before they occur. Key Risk Indicators and Risk Appetite This virtual course offers a full review of the role and attributes of KRIs in financial services. It is also important to decide where the records management department fits in with an organization. to complete or run properly during the measurement period. IT Budget Variance (Actual vs. With the rapid advancement in business systems, practices and procedures must be established to guide public and private entities through the potential minefield of electronic records management issues. (KPIs) from key risk indicators (KRIs). Percentage of Critical System Backups that are Not Fully Automated – The number of critical systems without an automated (i.e., no manual work required) backup currently configured and running accurately as a percentage of total critical system backups (automated and manual). For example, a retail bank branch might be concerned with fraudulent bank accounts being opened, but the IT department of the financial institution will be more focused on data security and leaks. System Availability – All Systems – The amount of time (measured in minutes) that ALL systems are online and available for use by all authorized users divided by the total amount of time those systems are scheduled to be available for use over the same period of time, as a percentage. As their name states, KRIs are indicators that are key for the risk management process. Importance of Key Risk Indicators (KRIs) ... Director, Enterprise Risk Management at ConEdison, Inc. based in New York, about Key Risk Indicators(KRIs). Technology risk in modern day business can be seen in news headlines on a daily basis. And as exceptions occur, alerts must be sent out quickly so that immediate corrective action can be taken and losses minimized. 16. Percentage of Network Devices Not Meeting Configuration Standards – The total number of network devices (modems, routers, switches, etc.) Average Page Load Time – The average amount of time (in seconds) required for the user’s browser to full load a web page within the company’s website, from the time the click occurs until the web browser has loaded the page in full. Schedule variance (SV) 69. 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. Examples of project management key performance indicators: 64. Risk is not just a threat, it is a business opportunity as well, Use risk scorecard as a base for the risk discussions. Just like key performance indicators, these metrics may vary based on the departments or processes being examined, or the target audience being considered (e.g., line manager vs. senior executive). Percentage of IT Projects Delayed – The number of IT projects that are NOT completed before or on their initial planned completion (i.e., delayed projects) date as a percentage of total IT projects completed over the same period of time. Why have this model then? Everything depends upon the business context (business objectives). Most of the principles that we discussed for KPIs (Key Performance Indicators) apply to KRI: Having said that, I recommend checking out the article: 12 Steps KPI System. It clarifies some confusing ideas about KRIs and offers insight on their role in a risk management framework. Percentage of Devices Not Running Updated Anti-Malware Controls – The number of devices (workstations, servers, mobile devices) managed by the company that are not currently running fully up-to-date anti-malware protection as a percentage of total devices managed by the organization. Mean Network Hardware Utilization Rate – Overall (30 Minute Intervals) – The average utilization rate (i.e., percentage of total available network hardware capacity being used), measured as a ratio of current network traffic to the total amount of traffic that the network, or port, being examined can handle. Let’s talk about Risk Management. Below, in this blog post, is a library of 64 key risk indicators. For sure, we don’t have metrics for probability and impact, but we can easily add them…. This website uses cookies to improve your experience. Rich describes KRIs and how they can be used to give management an early warning that there is a developing risk issue that needs to be addressed. Risk Indicators and Thresholds are critical elements to the successful implementation of risk-based monitoring methodology into a clinical trial. There should be a buy in from the team, etc. Properly designed risk framework supports risk discussion in your company. Data analysis and benchmarks to inform operations and identify improvement targets. In this way, KRIs help you to monitor risks … Percentage of Critical Systems without Up-to-Date Patches – The total number of critical systems (all deployed instances of the system or application running on each device/workstation) that do not currently have up-to-date patches installed and running as a percentage of total critical system end user devices/workstations. “Net profit is a KPI because it doesn’t tell us anything about the risk level or risk control!” – often suggest authors. Overview Key Risk Indicators (KRIs) are critical predictors of unfavourable events that can adversely impact organizations. This perception is generally correct with one exception: risk doesn’t always need to be a threat for a business, it might be an opportunity as well. The ANAO has made two recommendations aimed at strengthening the governance of Health’s records management and the department’s TRIM EDRMS … They need to have a proper business context. Risk indicators are still indicators. Number of Instances Where Systems Exceeded Capacity Requirements – The total number of instances (i.e., a specific point in time) where systems exceeded the pre-defined capacity threshold, measured in transactions or requests per second, within the measurement period. 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. The thing is that “Net profit” by itself doesn’t tell us either anything about performance or the way one wants to increase it! To make a use of “Net profit” we need to put it in a proper business context, add thresholds, baseline, and target marks, and add some relevant action plan: Have a look at this KPI! Molecular risk indicator (biomarker), such as Elevated prostate specific antigen as a biomarker for prostate cancer, cholesterol values as a risk indicator for potential coronary and vascular disease, C-reactive protein (CRP) is considered a risk indicator or biomarker for inflammation, enzyme assays are used for Liver function tests which point towards risk of Liver disease. Percentage of Unsuccessful Changes – All Levels of Impact – The number of changes rolled out by the IT function to company devices or workstations that must be rolled back (i.e., affected systems are restored to pre-change state through version control, or similar) due to issues that occurred following the implementation of the change, as a percentage of total changes attempted over the same period of time. Percentage of System/Application Downtime Caused by Inadequate Server Capacity – The amount of system downtime, or service interruption time, that was caused specifically by insufficient capacity (i.e., requests/transaction load directly caused failure) as a percentage of total unplanned downtime within the measurement period. KRIs are not that different from KPI; Risk Management frameworks are not that different from the Balanced Scorecard. There has been much debate in recent years regarding the role of key risk indicators (KRIs) in risk management. That person (or persons) is usually the expert in the records lifecycle and in how to maintain and protect privacy and data. In the free BSC Designer account, you have access to several risk scorecards with a total of 89 KRIs. Percentage of System Releases Not Mirrored on Backup Systems Within 24 Hours Following Launch – All Systems – The number of releases that were successfully launched to the live environment that were not mirrored on backup systems within 24 hours following the successful launch as a percentage of total changes successfully performed during the measurement period. risk metrics commonly known as key risk indicators (KRIs). Most of the principles that we discussed for KPIs (Key Performance Indicators) apply to KRI: Course agenda Pricing & Registration. Network Availability – The amount of time (measured in minutes) that the company’s network is available for use by all authorized users divided by the total amount of time the network is scheduled to be available for use over the same period of time, as a percentage. Key risk indicators are metrics used by organizations to provide an early signal of increasing risk exposures in various areas of the enterprise. As we discussed in the corporate governance article, there is no particular need in a separate GRC software. Key risk indicator examples are defined as previously used or researched illustrative measurements of risk that can installed and tracked to lower the risk profile in a company or business process. These reports often are focused almost exclusively on the historical performance of the organization and its key units and operations. Bounce Rate – The number of users that view only one web page when visiting the site before exiting (i.e., bouncing) as a percentage of total website visits over the same period of time. Key Risk Indicators are a metric type indicator developed to improve management’s position to handle events that may arise in the future in a timely and strategic way. % of … Percent Difference in MTBF (Monthly) – The difference in Mean Time Between Failure (MTBF) from month-to-month for the group of systems being examined, measured as a percentage. KPI definition, data wrangling and standardization to maximize your tech investments. I am ready to argue about this in the comments. Percentage of Servers that have Not Received a Full Malware Scan Within Last 24 Hours – The number of servers that have not undergone a full, successful virus scan with that last 24 hours as a percentage of total active servers managed by the organization. Key Risk Indicators are the metrics identified to support proactive risk management. We will follow up with you with lessons about the Balanced Scorecard and will keep you informed about the trending articles on bscdesigner.com, Key Risk Indicators, Scorecard, and Template. Sign up for our email newsletter to be notified when we produce new content. Complete or run properly during the measurement period are measurements that allow estimating risk,. Percentage of Network Devices not Meeting Configuration Standards – the total number of formal Firewall Reviews. 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