These reports often are focused almost exclusively on the historical performance of the organization and its key units and operations. 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. There has been much debate in recent years regarding the role of key risk indicators (KRIs) in risk management. When implemented as a part of an integrated enterprise risk management framework, KRIs are critical to informing management of direction of the risk profile in relation to the risk appetite of a firm. KPI definition, data wrangling and standardization to maximize your tech investments. Earned value (EV) 67. KPIs need to be aligned with the business strategy; and how one determined this strategy? Number of Firewall Reviews Conducted – The total number of formal firewall configuration reviews conducted by IT team members during the measurement period. 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. Risk indicators are still indicators. Average Time Elapsed Between Formal Reviews of Firewall Rules – The average number of calendar days elapsed between formal firewall rules reviews conducted by the company to determine if rules must be added, removed or edited to meet current operating requirements. For now, it is enough to define KRI as those risk metrics that are an important part of your risk management portfolio. Percentage of System Changes Not Mirrored on Backup Systems Within 24 Hours Following Launch – All Systems – The number of system changes 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. 16. 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? Overview Key Risk Indicators (KRIs) are critical predictors of unfavourable events that can adversely impact organizations. Isa (2009:4) ponders that the embedding of records management into the risk management function is a long-term exercise to ensure that records consideration is at the heart of all management processes. They can track department or company performance, gauge the adoption of policy, or confirm compliance. 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). Let’s talk about Risk Management. More Information. 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. Percentage of Systems Running without Current Maintenance Contract – All Systems – The number of actively used systems or applications that do not have a current maintenance contract in place as a percentage of total systems/applications managed at the same point in time. Technology risk in modern day business can be seen in news headlines on a daily basis. Both management and boards regularly review summary data that include selected KPIs designed to provide a high-level overview of the performance of the organization and its major operating units. Risk is not just a threat, it is a business opportunity as well, Use risk scorecard as a base for the risk discussions. In some literature KPIs and KRIs are strongly divided, the first are responsible for business performance and the second are about risk. To generate the risk metrics, they must collect, aggregate and analyze vast amounts of data in multiple transactional and historical systems. Insurance companies regularly use their KPI measurements to benchmark themselves against competitors and identify best practices in other segments of the financial services industry. 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. Properly designed risk framework supports risk discussion in your company. For sure, we don’t have metrics for probability and impact, but we can easily add them…. Percentage of Workstations that have Not Received a Full Malware Scan Within Last 24 Hours – The number of workstations that have not undergone a full, successful virus scan with that last 24 hours as a percentage of total active workstations managed by the organization. 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