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. Risk Indicators and Thresholds are critical elements to the successful implementation of risk-based monitoring methodology into a clinical trial. 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.”. Let’s start the discussion about Key Risk Indicators best practices. There has been much debate in recent years regarding the role of key risk indicators (KRIs) in risk management. 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. Technology risk in modern day business can be seen in news headlines on a daily basis. They need to have a proper business context. Risk is not just a threat, it is a business opportunity as well, Use risk scorecard as a base for the risk discussions. 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. Most of the principles that we discussed for KPIs (Key Performance Indicators) apply to KRI: There have to be a person responsible for KRI. Think of KRIs as an early warning system, like an alarm that goes off when the company’s risk exposure exceeds tolerable levels. 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. Risk indicators are still indicators. Vendor disputes may arise due to poor vendor performance, payment issues and/or project scope misalignment (i.e., scope “creep”), among other things. Percentage of Systems Undergoing Changes – All Systems – The total number of application or systems where a new change was completed or attempted by the IT function during the measurement period as a percentage of total systems managed. Records Management Risk Key Performance Indicators (KPIs) From creation to disposition, records in electronic recordkeeping systems may now utilize a variety of media. 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. In this step you look at what you need to measure in order to assess progress toward a given objective. 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. key risk indicator library, Key Risk Indicators, Key Risk Indicators Examples, KRI Examples, Technology Risk Management. For example, a retail bank branch might be concerned with fraudulent bank … 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. 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. There should be a buy in from the team, etc. 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. A service request is considered opened immediately upon reception (regardless of whether or not the request is acknowledged). Process modeling and diagnostic tools to identify improvements and automate processes. Determine the Key Performance Indicators (KPIs) for each objective. Number of Unused Firewall Rules – The total number of firewall rules (across all firewall applications/systems in use) that were found to no longer be in use during formal or informal firewall rule reviews conducted during the measurement period. Examples of project management key performance indicators: 64. “Key” word implies that there cannot be hundreds of KRIs; so if you have 100+ KRIs, then most likely these are just risk metrics. More Information. KRI examples can be used as a starting point to determine what gaps exist in current risk measurement activities of organizations. As their name states, KRIs are indicators that are key for the risk management process. To generate the risk metrics, they must collect, aggregate and analyze vast amounts of data in multiple transactional and historical systems. 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. 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. 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. It’s much better than regular formal reporting of KRIs that has nothing to do with real problems. 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. Planned value (PV) 65. Sign up for our email newsletter to be notified when we produce new content. Key risk indicators (KRIs) are defined as a quantifiable measurement used by bank management to precisely and accurately evaluate the potential risk exposure of a certain activity or process and how it will impact various areas of a financial institution using models and mathematical formulas. Key risk indicators are metrics used by organizations to provide an early signal of increasing risk exposures in various areas of the enterprise. Operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems, or external events. Properly designed risk framework supports risk discussion in your company. 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. One of the salient points of discussion has been the overlap between KRIs and KPIs (key performance indicators). 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. Key performance indicators (KPIs) are widely used in the insurance industry to measure the health of important business processes. 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. 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. Key Risk Indicators are the metrics identified to support proactive risk management. 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. 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). Below, we discuss how the users of BSC Designer can track their KRIs. Everything depends upon the business context (business objectives). To business lines managers, they may help to signal a change in the level of risk exposure associated with specific processes and activities. Number of Instances Where Network Bandwidth Utilization Exceeded Threshold – The total number of instances during the measurement period where network bandwidth capacity exceed a defined threshold (identified through network testing and monitoring) at which the network begins to exhibit request delays, low transmission speeds, etc. A key risk indicator is a measure used in management to indicate how risky an activity is. 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. Key words: metrics, key risk indicators, management, risk, dashboard. Percentage of Systems Undergoing New Releases – All Systems – The total number of application or systems where a new release was completed or attempted by the IT function during the measurement period as a percentage of total systems managed. An insurance claims department might focus on fraudulent claims KRIs, while an IT project management team might worry about server redundancy to measure and avoid system downtime risk. 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. That person (or persons) is usually the expert in the records lifecycle and in how to maintain and protect privacy and data. This is the actual scorecard with Data Records Management Dashboard and performance indicators. 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. for risk management, records management is important in strategic decision-making, helps cut down costs and reduces risks from litigation, amongst others. 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. When mapping business strategy we always suggest making sure that there are: Compare this to the “probability,” “impact,” and “control plan” and you will see what I mean. This metric may also be known as “Patch Coverage Rate.”. Data breaches from large corporations can drive stock prices down by 30-50% in one trading day. 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. They monitor changes in the levels of risk exposure and contribute to the early warning signs that enable organizations to report risks, prevent crises and mitigate them in time. 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. 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. 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. 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. KRIs measure the potential risk related to a specific action that the organization is considering—as well as the risk inherent in the company’s day-to-day operations. 73. Doesn’t it look like a KRI now? 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. 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. Here comes an interesting part. As we discussed in the corporate governance article, there is no particular need in a separate GRC software. 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. 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. KRIs are not that different from KPI; Risk Management frameworks are not that different from the Balanced Scorecard. 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. When reading, replace “KPI” with “KRI” and you can easily use all the same ideas and recommendations. 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. 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). In our recent survey, KRIs were identified as one of the next major areas of research and investment for operational risk management departments. The main purpose of this case study is to take a closer look at risk reporting metrics and key risk indicators (KRIs). 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. (Be sure to check our Banking KRIs top 35 list for future reference if you work in a bank). 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. Business intelligence dashboards and analysis to improve management capabilities. 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. to complete or run properly during the measurement period. Average Time on Site – The average amount of time a website visitor spends on the website, from the time that the user lands on a page until they exit the website, during the course of a single visit, or session, during the measurement period. KRIs are indicators or metrics that are used to measure risks that the business is exposed to. 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. Course agenda Pricing & Registration. 1. Using the same example, the things to measure would be the volume of email traffic and the extent of use of the EDRMS. They can track department or company performance, gauge the adoption of policy, or confirm compliance. As it comes from the definition of the risk in ISO standard, the ultimate decision of what is and is not a risk depends on a company’s objectives, so be careful when copying KRIs from others. Establish a culture similar to one in NASA: if the problem appeared once, they conducted a careful research about possible reasons why it happened; even if it did not repeat. 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… So, what is a Risk Indicator? 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. 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. % of … It is also important to decide where the records management department fits in with an organization. What are Key Risk Indicators? This website uses cookies to improve your experience. These non-supported systems may also be considered “legacy” systems. 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.) Key Risk Indicators and Risk Appetite This virtual course offers a full review of the role and attributes of KRIs in financial services. Measuring your progress towards these goals requires Key Performance Indicators or KPIs. 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? 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. While the action plan indicator relates to the risk control procedures. Cost variance (CV) (planned budget vs. actual budget) 68. that were found not to be in compliance the company’s pre-defined configuration standards as a percentage of total network devices under management at the same point in time. 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. Cost performance index (CPI) 71. 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. The importance of ERM consists on the need of managing the risks properly, in order to sustain operations and achieve the business objectives. 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). They allow you to benchmark and monitor the health and progress of your Records Management Programme. 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. Proven leading practices that you can implement for your business. Schedule variance (SV) 69. 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