Key Risk Indicators Provide a Full View

Over the past few years, companies have become enamored with key performance indicators ("KPIs") as a method for improving their operations and bottom-lines.  However, when viewed in the short-term, KPIs are only one side of the coin.  To have a full view, companies must understand their key risk indicators ("KRIs") as well.  Here is a recent viewpoint from Ventana Research.

Key Risk Indicators (KRIs) are emerging as an important element of performance management. This reflects the times, since corporations tend to pay closer attention to understanding and mitigating risk during a crisis or a tough business environment. In a challenging business environment, KRIs are becoming increasingly important because they are an important complement to Key Performance Indicators (KPIs). KPIs are related to the most important business objectives. They indicate the degree to which individuals, business units or companies are achieving them. KRIs are specific events or root causes that prevent achievement of performance goals.

Does your company have a full view through KPIs and KRIs?  If not, Wheelhouse Advisors can help.  Visit www.WheelhouseAdvisors.com.