Key Risk Indicators Can Turn Risk Mitigation Concepts Into Action

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Risk management, compliance, and audit professionals face unique sets of challenges daily. They have to identify risks, assess processes, and report on them in a manner that everyone has to understand. There are constant revisions of risk assessments and modifications to risk responses, audit procedures, and dealing with ever-changing and complex circumstances and regulations. GRC professionals need knowledge, grit, efficient processes and practices, and the GRC software that can bring it all together.  

In this blog post, I want to focus on a concept mentioned above — how Key Risk Indicators (KRIs) can help organizations achieve efficient processes and practices. I also plan to address the GRC software part, but we’ll get to that later.

What Are KRIs?

KRIs help companies identify, focus, and manage risk and emerging threats and better prepare for the future. A good way to think of it as an indicator is used to predict potential risk and thus a potentially negative consequence on the organization.

How? KRIs measure potential risks in a business that could negatively impact a company’s future. They act as a preemptive warning system for early detection of threats, especially for companies with a risk-based culture. Well-thought-out KRIs provide opportunities for better risk quantifying and monitoring.

KRIs provide visibility into the weaknesses and processes within your company’s environments and can provide a lead-off point to develop risk assessment plans. For instance, we typically see the response of a KRI above or below its threshold being used to develop a risk response as

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