A key risk indicator only helps if someone sees it move in time. Rukn ERM gives every KRI an owner, thresholds and a measurement schedule, records each reading, and alerts the right people when an indicator breaches its red threshold or a reading is late.
Most organizations can name their key risk indicators. Fewer can say when each was last measured. In a spreadsheet, thresholds sit in one column, readings arrive by email, and a breach is noticed at the next committee meeting, if at all. KRI software turns the list into a monitoring cycle: each indicator is due, measured, compared with its thresholds and, when it breaches, escalated.
A unique code, name, description, unit of measure and a named owner for every indicator.
Choose whether higher or lower is worse, then set amber and red thresholds. Rukn ERM checks the thresholds are in a sensible order for that direction.
Daily, weekly, monthly, quarterly, semi-annual or annual. The next due date is set from each reading, so a late measurement does not stay late forever.
Record each value with a note on the web or on a phone. The KRI owner, administrators and risk managers can record readings, and each is stamped with who recorded it and when.
The latest reading gives the KRI its status: green, amber, red or no data. The full reading history stays on the indicator, each reading coloured against the thresholds.
Link a KRI to the risk it signals and the control it monitors. The KRI shows that control's latest rating and when it was last tested.
A breach nobody sees is not early warning. When a reading crosses the red threshold, Rukn ERM notifies the indicator's owner and the organization's risk managers straight away.
KRIs are most useful when they sit next to the risks and controls they describe. In Rukn ERM they are linked to the risk register and to the controls behind each risk assessment, so an indicator at red points straight to the risk it signals and the control it monitors. Rukn ERM is aligned with the COSO Enterprise Risk Management framework (2017), where monitoring indicators belongs to the Review and revision component.
Choosing the indicators is the hard part. Our guide to choosing KRIs that actually work and the free KRI library template are a good place to start.
A good KRI is tied to a specific risk, leads rather than lags, has a named owner and data source, and has thresholds agreed before the first reading. How to choose KRIs that work.
A KPI tells you how well you are performing against a goal. A KRI warns that the risk of missing an objective is rising. The same metric can be both, but a KRI has thresholds set around your risk appetite and an owner who acts when it is breached.
No, but it usually should be. A KRI can stand on its own, be linked to the risk it signals, and optionally be linked to the control it monitors, in which case the KRI shows that control's latest rating and test date.
Yes. Our free KRI library template has example indicators with thresholds that you can adapt, and the startup data workbook imports KRIs into Rukn ERM alongside your risks and controls.
Start a 30-day free trial for up to 3 users. No card required.
Rukn ERM