FinTech Glossary

What Is a Key Risk Indicator

A key risk indicator (KRI) is a measurable metric used to identify, monitor, and signal potential risks that could impact an organisation’s operations, finances, or compliance objectives.

Business Context

KRIs help organisations track risk exposure before issues escalate.

They act as early warning signals that highlight trends or conditions indicating increased risk.

KRIs are commonly used in risk management, compliance, finance, and governance functions.

Types of KRIs

Common categories of KRIs include:

1. Operational KRIs such as system downtime or process failures
2. Financial KRIs such as liquidity gaps or expense overruns
3. Compliance KRIs tracking regulatory breaches
4. Fraud and security KRIs monitoring suspicious activity

Each category supports targeted risk monitoring.