Key indicators

The metrics reported in dashboards are called key indicators. Three types of indicators are reported in a dashboard:

• Key performance indicators (KPIs): KPIs are used to understand and enable the measurement of control performance. The level of performance can be different for each organization, and therefore, the risk manager should strive to define KPIs that make the most sense to the organization’s objectives and risk appetite. An example of a KPI could be a reduction in phishing emails after implementing a new tool.
• Key risk indicators (KRIs): KRIs are considered to be highly probable indicators designed to predict risks that could breach the defined thresholds. The goal of defining KRIs is to monitor and analyze trends, determine the effectiveness and efficiency of controls to make informed decisions for current controls and planned countermeasures, and alert relevant stakeholders when the risk breaches the predefined thresholds. An example of...