Create & Monitor KRIs

To aid organizations in monitoring the status of risks, Risk Management allows for the creation of key risk indicators (KRIs). KRIs track the levels of specific aspects of a risk (eg. profit loss, percentage of employees who have completed training, etc.) and sends an alert when these levels cross acceptable thresholds. KRIs can be created by the risk team in risks that are in the Review and Monitoring workflow state. 

KRI's can also be created by risk owners in risks that are in the Assess Risk workflow state. While the exact procedure will vary from organization to organization, it is recommended that KRIs are created by the risk team.

Once the indicator owner has updated the KRI, it is moved to the Monitoring workflow state. Members of the risk team can then monitor the KRI to ensure it is still being followed and they can return the KRI to the indicator owner for further updates.

To create a KRI:

  1. Log into a user account that's been added to the Risk Team user group.

  2. Click the dropdown in the nav bar > Risk Management.The nav bar.

  3. Navigate to the Review & Monitor tab and click a risk in the Review Risks or Risk Monitoring section.The Monitor & Review tab.

  4. Click Key Risk Indicators in the Determine Residual Risk section.The Key Risk Indicators tab of the Determine Residual Risk section.

  5. Click Create New to open the Create a New Indicator dialogue.The Create a New Indicator dialogue

  6. Enter a name in the Indicator Name field, then add a description of the indicator to the Indicator Description field.

  7. Begin typing keywords in the Indicator Owner field to display a list of available users, then click to select an appropriate user. Multiple indicator owners can be assigned to a single KRI.

  8. Click Create and Save as Draft.

  9. In the Determine Residual Risk section, click the KRI in the Draft workflow state to open the Draft Indicator dialogue.The Draft Indicator dialogue.

  10. In the Key Dates section:

    1. Enter the date that the indicator should be updated by in the Due Date field.

    2. Enter the date by which the indicator update should be finalized by in the Reporting Date field.

  11. In the Indicator Details section:

    1. Select how frequently the indicator should be updated in the Frequency of Update select list.

    2. Select what the indicator is current, leading, or lagging in the Classification select list.

    3. Select what kind of limit range the indicator should have in the Type select list. For example, if the indicator's value cannot go above a certain level, select Increasing Range. If it cannot go below a certain level, select Decreasing Range. If the value must stay between two levels, select Range.

      If the user selects Increasing Range or Decreasing Range, the Indicator Limits section below will only have the Target Limit and Threshold Limit fields available.
    4. Select how the indicator should be measured in the Unit of Measurement select list.The Indicator Details section.

  12. In the Indicator Limits section:

    1. Enter the ideal value that the indicator should have by default in the Target Value field. 

    2. Enter how low or high the value can go before being out of tolerance in the Threshold Lower Limit and Threshold Upper Limit fields. 

    3. Enter how low or high the value can go before being considered off-target but still within tolerance in the Target Lower Limit and Target Upper Limit fields. The Indicator Limits section.

  13. Optional: Expand the Related Data section to view the risks and objectives the KRI is attached to. The Related Data  section.

  14. Optional: Add comments, as needed. 

  15. Click Send to Indicator Owner.

To monitor a KRI:

  1. Log into a user account that's been added to the Risk Team user group.

  2. Click the dropdown in the nav bar > Risk Management.The nav bar.

  3. Navigate to the Indicators tab and scroll down to the Monitor Indicators section.The Monitor Indicators section of the Indicators tab.

  4. Click a KRI in the Monitoring workflow state to open the Monitor Indicator form.The Monitor Indicator form.

  5. Edit the fields as required. See the Update a KRI article for more information on filling in the rest of the form.

  6. Optional: If the KRI requires further updates from the indicator owner, click Send for Update.