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key risk indicator (kri)

A Key Risk Indicator or KRI is a measure used in management to assess the degree of risk involved in the different areas of activity of an organisation. KRIs work as indicators of events that might have harmful effects on a company or its activity. KRIs are typically measurable, i.e., they can be quantified in terms of percentages, numbers etc. They are predictable and are often used as early warning signals, while also tracking trends over a period of time.

In a certain sense, KRIs could be understood as the antithesis of Key Performance Indicators (KPIs). While KPIs show how well a company is doing, KRIs are designed to warn management about potential sources of risk.