Determine the Key Performance Indicators (KPIs) for each objective. Average Page Views per Visit – The average number of individual web pages viewed by a website visitor during the course of a single visit, or session, during the measurement period. Deployed Hardware Utilization Ratio (DH-UR) – The ratio of number of servers that are running live applications used by the organization to the total number of servers currently managed, or deployed by the organization at the time of measurement. 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. Percentage of Network Devices Not Meeting Configuration Standards – The total number of network devices (modems, routers, switches, etc.) Number of Disputes with IT Vendors – The total number of formal disputes that took place between the company and IT-related vendors over the last 3 months. key risk indicator library, Key Risk Indicators, Key Risk Indicators Examples, KRI Examples, Technology Risk Management. There have to be a person responsible for KRI. KRIs, or key risk indicators, are defined as measurements, or metrics, used by an organization to manage current and potential exposure to various operational, financial, reputational, compliance, and strategic risks. 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. 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! I’d say that the pair of “probability” and “impact” indicators form the KRI. 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. Didn’t we use, Detecting/predicting threats/opportunities, Estimating the chance that they will happen (their probability), Lagging indicators aligned with business objectives, and an, The most important step is to implement in your company a proper. In this way you will implement risk control into the company’s DNA. Percentage of Mobile Devices that have Not Received a Full Malware Scan Within Last 24 Hours – The number of mobile devices that have not undergone a full, successful virus scan with that last 24 hours as a percentage of total active mobile devices managed by the organization. Everything depends upon the business context (business objectives). These measurements inform management of a company’s technology and business risk profile and can be used to help investigate and improve operations where attention is needed. Key Risk Indicators and Risk Appetite This virtual course offers a full review of the role and attributes of KRIs in financial services. Data breaches from large corporations can drive stock prices down by 30-50% in one trading day. 72. And as exceptions occur, alerts must be sent out quickly so that immediate corrective action can be taken and losses minimized. Cost performance index (CPI) 71. 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). 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. 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. KRIs are indicators or metrics that are used to measure risks that the business is exposed to. Risks to an organization vary based on individual work group or department. In addition, you will find for sale two items, a handbook for sale with an even larger list of 120 KRIs, and a key risk indicator benchmarking report. Look closely at why your KPIs would change. Risks to an organization vary based on individual work group or department. Area definitions, KPI examples and common job titles for a variety of industries. A Risk Indicator can be qualitative (for example: a site monitor’s assessment of site quality) or quantitative information that is used to monitor identified risk exposures over time, and are in… Total Number of IT Assets Current Not in Use – The total number of IT assets owned by the organization that are currently (i.e., at the point of measurement) not used in any capacity by the organization. In other words, the modern definition of risk recognizes that risk is not only about threats, but about opportunities as well. 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. Below, in this blog post, is a library of 64 key risk indicators. Key Risk Indicators are the metrics identified to support proactive risk management. 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. from month-to-month. Percentage of IT Projects That Exceeded Budget – The number of IT projects that exceed the initially developed budget parameters as a percentage of total IT projects completed over the same period of time. Here is a template that one can use for a Key Risk Indicator. Percentage of IT Assets (Devices) Impacted by End-of-Life or Support – The number of devices managed by the IT Department that are slated to be impacted by upcoming end-of-life (EoL) or end-of-support (EoS) dates. 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. KRIs act as an early-warning system to alert the company of financial issues (lost revenue), operational issues (loss of productivity), or reputational issues (loss of credibility). 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. KRIs are used to calculate the risk, usually measured in percentages, of potentially unfavorable events that can negatively affect a process, an activity, or an entire company. One of the salient points of discussion has been the overlap between KRIs and KPIs (key performance indicators). Risk is not just a threat, it is a business opportunity as well, Use risk scorecard as a base for the risk discussions. Percent Change in Number of Website Visits – Month over Month (MoM) – The percent difference in the total number of users that visited the website through all channels (organic search, paid search, direct, referral, etc.) A key risk indicator (KRI) is a metric for measuring the likelihood that the combined probability of an event and its consequence will exceed the organization's risk appetite and have a profoundly negative impact on an organization's ability to be successful. Percentage of IT Projects Reworked Due to Misaligned Requirements Within the Last 90 Days – The number of IT projects that, within the last 90 days, required re-scoping or re-prioritization due to business requirements that were not clearly defined, or were not sufficiently reviewed by key stakeholders prior to project launch as a percentage of total IT projects running. 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). Using the same example, the things to measure would be the volume of email traffic and the extent of use of the EDRMS. Percentage of Mobile Devices Not Running Updated Anti-Malware Controls – The number of mobile devices managed by the company that are not currently running fully up-to-date anti-malware protection as a percentage of active mobile devices managed by the organization. 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. Internal IT Team SLA Adherence – The number of internal service level agreements where the IT team has met or exceeded targets outlined in their corresponding Service Level Agreement (SLA) over the last 3 months as a percentage of total IT team activities and performance levels are governed by a formal SLA. % of … Number of Workstations Experiencing Hardware-related Performance Issues Within the Last 90 Days – The number of individual workstations that have experienced performance issues during the last 90 calendar days as a percentage of total workstations operated by the company. Number of Network Outages Attributed to Internet Service Provider – The number of network outages that can be attributed to the company’s Internet Service Provider (ISP), rather than an internal source, during the measurement period. Measuring your progress towards these goals requires Key Performance Indicators or KPIs. IT Service Desk – Mean Service Request Resolution Time (All Levels) – The average amount of time (measured in minutes) required for the IT support team to resolve, or close, an IT support request, measured from the time that the ticket or request is submitted by an employee until the issue has been resolved and formally closed. Number of Firewall Reviews Conducted – The total number of formal firewall configuration reviews conducted by IT team members during the measurement period. The importance of ERM consists on the need of managing the risks properly, in order to sustain operations and achieve the business objectives. KRIs are metrics used to provide an early signal of increasing risk exposure in various areas of the organization. Operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems, or external events. As their name states, KRIs are indicators that are key for the risk management process. KPI definition, data wrangling and standardization to maximize your tech investments. It’s much better than regular formal reporting of KRIs that has nothing to do with real problems. Essentially Records Management KPIs are measurements that allow you to stay on track by indicating ups and downs in performance. 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? The main purpose of this case study is to take a closer look at risk reporting metrics and key risk indicators (KRIs). 1. Sign up for our email newsletter to be notified when we produce new content. That person (or persons) is usually the expert in the records lifecycle and in how to maintain and protect privacy and data. KPIs need to be aligned with the business strategy; and how one determined this strategy? Key Risk Indicators and Risk Appetite 10-12 November, Online. Mean Time Between Failure (MTBF) – All Systems – The average amount of time (measured in days) elapsed between system failures, measured from the moment the system initially fails, until the time that the next failure occurs (including the time required to perform any repairs after the initial failure). As with KPIs, KRIs need to be aligned with business context, if not, then you will be evaluating and trying to manage risk that will never occur in your business. As an example of a typical KPI that is not a KRI that is often used is “Net Profit.”. Number of Servers Experiencing Hardware-related Performance Issues Within the Last 90 Days – The number of servers that have experienced hardware-related performance issues during the last 90 calendar days as a percentage of total servers operated by the company. Whatever the purpose, KPIs are powerful tools for measuring the progress and direction of an organization. Budgeted) – The difference in planned (i.e., budgeted) versus actual IT expense for the entire IT department, or function, during the measurement period, measured as a percentage. IT Service Desk – Total Number of Requests Opened (All Levels) – The total number of service requests, or tickets, received by the IT service desk team over a certain period of time. When reading, replace “KPI” with “KRI” and you can easily use all the same ideas and recommendations. 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. In some literature KPIs and KRIs are strongly divided, the first are responsible for business performance and the second are about risk. Percentage of Firewall Rules Added or Changed Within Last 90 Days That Were Formally Documented – The number of changes to firewall rules that were applied to the company’s firewall (across all firewall applications/systems in use) that were formally documented according to the company’s policies/procedures as a percentage of total firewall rule changes applied within the last 90 calendar days. Percentage of Systems in Use that are No Longer Supported – The number of systems currently in use by the company that are no longer supported by the original developer as a percentage of total systems used by the organization at the same point in time. 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. Intuitively one understands that risk is something regarding a danger/threat that might happen with a certain probability and result in some type of negative outcomes. Risk Indicators and Thresholds are critical elements to the successful implementation of risk-based monitoring methodology into a clinical trial. Planned value (PV) 65. Another thought that supports the idea of the similar nature of KRIs and KPIs: Well, I’m exaggerating, but I personally don’t see any fundamental difference. 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. This website uses cookies to improve your experience. Business intelligence dashboards and analysis to improve management capabilities. As business objectives are projections of properly defined strategy, risks are projections of a properly done risk analysis. Number of Instances Where Network Hardware Utilization Exceeded Threshold – The total number of instances during the measurement period where network hardware capacity exceed a defined threshold (identified through network testing and monitoring) at which the network begins to exhibit request delays, low transmission speeds, etc. IT Service Provider SLA Adherence – The number of IT vendor service level agreements where the vendor has met or exceeded targets outlined in their corresponding Service Level Agreement (SLA) over the last 3 months as a percentage of total vendor, or service provider, activities and performance levels are governed by a formal SLA. Most of the principles that we discussed for KPIs (Key Performance Indicators) apply to KRI: IT Service Desk – Percentage of Requests Not Resolved within SLA (All Levels) – The number of IT service requests that are not resolved within the timeframe defined by the company’s SLA as a percentage of total issues resolved over the same period of time. Percent Difference in MTTR (Monthly) – The difference in Mean Time to Repair (MTTR) from month-to-month for the group of systems being examined, measured as a percentage. It clarifies some confusing ideas about KRIs and offers insight on their role in a risk management framework. Total Number of Critical System Backup Failures – The total number of critical system backup processes that failed (i.e., did not run, were not captured in-full, were captured with errors, etc.) risk metrics commonly known as key risk indicators (KRIs). The key to an effective records management system rests in unlocking the strengths of each area as well as integration to serve the needs of the organization and meet regulatory requirements. These reports often are focused almost exclusively on the historical performance of the organization and its key units and operations. Percentage of Workstations Not Running Updated Anti-Malware Controls – The number of workstations managed by the company that are not currently running fully up-to-date anti-malware protection as a percentage of active workstations managed by the organization. Proven leading practices that you can implement for your business. 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. There should be a buy in from the team, etc. The thing is that “Net profit” by itself doesn’t tell us either anything about performance or the way one wants to increase it! It combines indicators that allow estimating risk probability, risk impact, and risk control actions. A service request is considered opened immediately upon reception (regardless of whether or not the request is acknowledged). What is risk and how can one measure and control it? It differs from a key performance indicator in that the latter is meant as a measure of how well something is being done while the former is an indicator of the possibility of … Examples of project management key performance indicators: 64. Percentage of Changes Considered Emergency Changes – The number of changes, or patches, to systems, devices and applications that are considered to be an emergency as a percentage of changes made over the same period of time. While the action plan indicator relates to the risk control procedures. 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. Percentage of Downtime Due to Scheduled Activities – All Systems – The total amount of downtime, measured in minutes, that has been set aside and used by the IT function for planned system maintenance activities (as opposed to unplanned downtime) as a percentage of total downtime (planned and unplanned) during the measurement period. Why have this model then? “Key” word implies that there cannot be hundreds of KRIs; so if you have 100+ KRIs, then most likely these are just risk metrics. 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. Does it belong in legal services, management … To business lines managers, they may help to signal a change in the level of risk exposure associated with specific processes and activities. COVID-19: Business Continuity Strategy (Template), BSC Designer – Strategy Execution Software. Introduction: Enterprise Risk Management (ERM) represent the authority that is dealing with uncertainty for the enterprise. The risk assessment model that was described above is nothing new, but you need it just as you need a strategy map in business performance management. Actual cost (AC) 66. Specific numbers might be tricky and won’t give you a specific information. Overdue project tasks / crossed deadlines. 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. Properly designed risk framework supports risk discussion in your company. Planned hours of work vs. actual situation . Risk indicators are still indicators. This metric may also be known as “Patch Coverage Rate.”. More Information. I am ready to argue about this in the comments. This is the actual scorecard with Data Records Management Dashboard and performance indicators. They link back to your operational risk management activities and processes, including risk identification; risk and control assessments; and the implementation of risk appetite, risk management, and governance frameworks. Key risk indicators (KRIs) are an important tool within risk management and are used to enhance the monitoring and mitigation of risks and facilitate risk reporting. 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. As strategy map helps to discuss strategy, risk assessment model/scorecard needs to be a base for further discussions related to the risk identification and control. “Net profit is a KPI because it doesn’t tell us anything about the risk level or risk control!” – often suggest authors. The older definition of risk in ISO was “a chance or probability of loss,” while the latest ISO 31000:2009 defines risk as “the effect of uncertainty on objectives.”. Schedule performance index (SPI) 70. 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