Definition
A key risk indicator is a metric organizations use to evaluate and measure potential risks, allowing them to track their risk profile. For instance, a company can analyze the threats and vulnerabilities of its tools to assess the likelihood of a cyberattack.
Categories of Key Risk Indicators
- Operational: Organizations can evaluate risks at any time, such as cyberattacks or malfunctions.
- Financial: Companies can assess financial risks linked to the market, regulation, laws, or competition.
- People: A business can evaluate people-related risks like employee and customer retention and satisfaction.
