Average Page Load Time – The average amount of time (in seconds) required for the user’s browser to full load a web page within the company’s website, from the time the click occurs until the web browser has loaded the page in full. Records Management Risk Key Performance Indicators (KPIs) From creation to disposition, records in electronic recordkeeping systems may now utilize a variety of media. KRIs measure the potential risk related to a specific action that the organization is considering—as well as the risk inherent in the company’s day-to-day operations. Measuring your progress towards these goals requires Key Performance Indicators or KPIs. Data breaches from large corporations can drive stock prices down by 30-50% in one trading day. Risks to an organization vary based on individual work group or department. A high Bounce Rate can indicate that the website is not sufficiently designed to lead users to other locations around the website. Overview Key Risk Indicators (KRIs) are critical predictors of unfavourable events that can adversely impact organizations. Business intelligence dashboards and analysis to improve management capabilities. This perception is generally correct with one exception: risk doesn’t always need to be a threat for a business, it might be an opportunity as well. To generate the risk metrics, they must collect, aggregate and analyze vast amounts of data in multiple transactional and historical systems. risk metrics commonly known as key risk indicators (KRIs). Number of Unused Firewall Rules – The total number of firewall rules (across all firewall applications/systems in use) that were found to no longer be in use during formal or informal firewall rule reviews conducted during the measurement period. Planned hours of work vs. actual situation . To access these Risk Scorecards, follow these steps: Don’t take these risk indicators as must-have for your business. for risk management, records management is important in strategic decision-making, helps cut down costs and reduces risks from litigation, amongst others. % of … Implementing and closely tracking the right IT and IS key risk indicators can help reduce the risk for your company. Let’s start the discussion about Key Risk Indicators best practices. We will follow up with you with lessons about the Balanced Scorecard and will keep you informed about the trending articles on bscdesigner.com, Key Risk Indicators, Scorecard, and Template. Key risk indicators (KRIs) help with monitoring and controlling risk. Percent Difference in MTBF (Monthly) – The difference in Mean Time Between Failure (MTBF) from month-to-month for the group of systems being examined, measured as a percentage. Key risk indicators (KRIs) are defined as a quantifiable measurement used by bank management to precisely and accurately evaluate the potential risk exposure of a certain activity or process and how it will impact various areas of a financial institution using models and mathematical formulas. Total Number of IT Assets Current Not in Use – The total number of IT assets owned by the organization that are currently (i.e., at the point of measurement) not used in any capacity by the organization. Percentage of Unsuccessful Changes – All Levels of Impact – The number of changes rolled out by the IT function to company devices or workstations that must be rolled back (i.e., affected systems are restored to pre-change state through version control, or similar) due to issues that occurred following the implementation of the change, as a percentage of total changes attempted over the same period of time. Average Page Views per Visit – The average number of individual web pages viewed by a website visitor during the course of a single visit, or session, during the measurement period. COVID-19: Business Continuity Strategy (Template), BSC Designer – Strategy Execution Software. As business objectives are projections of properly defined strategy, risks are projections of a properly done risk analysis. They allow you to benchmark and monitor the health and progress of your Records Management Programme. The key to the system can be the records manager, the professional responsible for records management within an organization. Key Risk Indicators are a metric type indicator developed to improve management’s position to handle events that may arise in the future in a timely and strategic way. In other words, the modern definition of risk recognizes that risk is not only about threats, but about opportunities as well. That person (or persons) is usually the expert in the records lifecycle and in how to maintain and protect privacy and data. Sign up for our email newsletter to be notified when we produce new content. This website uses cookies to improve your experience. The thing is that “Net profit” by itself doesn’t tell us either anything about performance or the way one wants to increase it! KRI’s are able to assist businesses reduce loss and prevent exposure by indicating changes in risk profiles and proactively manage risk situations before they occur. Schedule performance index (SPI) 70. Percentage of Servers Not Running Updated Anti-Malware Controls – The number of servers managed by the company that are not currently running fully up-to-date anti-malware protection as a percentage of total active servers managed by the organization. Just like key performance indicators, these metrics may vary based on the departments or processes being examined, or the target audience being considered (e.g., line manager vs. senior executive). Key Risk Indicators and Risk Appetite 10-12 November, Online. Budgeted) – The difference in planned (i.e., budgeted) versus actual IT expense for the entire IT department, or function, during the measurement period, measured as a percentage. Overdue project tasks / crossed deadlines. Key risk indicators are metrics used by organizations to provide an early signal of increasing risk exposures in various areas of the enterprise. Most of the principles that we discussed for KPIs (Key Performance Indicators) apply to KRI: Having said that, I recommend checking out the article: 12 Steps KPI System. Percentage of Systems in Use that are No Longer Supported – The number of systems currently in use by the company that are no longer supported by the original developer as a percentage of total systems used by the organization at the same point in time. Mean Network Hardware Utilization Rate – Overall (30 Minute Intervals) – The average utilization rate (i.e., percentage of total available network hardware capacity being used), measured as a ratio of current network traffic to the total amount of traffic that the network, or port, being examined can handle. Proven leading practices that you can implement for your business. Essentially Records Management KPIs are measurements that allow you to stay on track by indicating ups and downs in performance. (KPIs) from key risk indicators (KRIs). This is the actual scorecard with Data Records Management Dashboard and performance indicators. Percentage of Mobile Devices Not Running Updated Anti-Malware Controls – The number of mobile devices managed by the company that are not currently running fully up-to-date anti-malware protection as a percentage of active mobile devices managed by the organization. Managing risks is about managing the chain of: Normally, we cannot map all these aspects of the risk in one KRI, so we will normally need 3 indicators: For example, for such KRI as “Poor mentoring of employees” we would have: Which of those indicators is a KRI? The risk assessment model that was described above is nothing new, but you need it just as you need a strategy map in business performance management. KRIs act as an early-warning system to alert the company of financial issues (lost revenue), operational issues (loss of productivity), or reputational issues (loss of credibility). Think of KRIs as an early warning system, like an alarm that goes off when the company’s risk exposure exceeds tolerable levels. What is risk and how can one measure and control it? With the rapid advancement in business systems, practices and procedures must be established to guide public and private entities through the potential minefield of electronic records management issues. As their name states, KRIs are indicators that are key for the risk management process. Establish a culture similar to one in NASA: if the problem appeared once, they conducted a careful research about possible reasons why it happened; even if it did not repeat. They monitor changes in the levels of risk exposure and contribute to the early warning signs that enable organizations to report risks, prevent crises and mitigate them in time. They can track department or company performance, gauge the adoption of policy, or confirm compliance. Percentage of IT Projects Delayed – The number of IT projects that are NOT completed before or on their initial planned completion (i.e., delayed projects) date as a percentage of total IT projects completed over the same period of time. Percentage of Systems Running without Current Maintenance Contract – All Systems – The number of actively used systems or applications that do not have a current maintenance contract in place as a percentage of total systems/applications managed at the same point in time. Number of Instances Where Network Hardware Utilization Exceeded Threshold – The total number of instances during the measurement period where network hardware capacity exceed a defined threshold (identified through network testing and monitoring) at which the network begins to exhibit request delays, low transmission speeds, etc. For sure, we don’t have metrics for probability and impact, but we can easily add them…. Total Number of Critical System Backup Failures – The total number of critical system backup processes that failed (i.e., did not run, were not captured in-full, were captured with errors, etc.) Area definitions, KPI examples and common job titles for a variety of industries. What are Key Risk Indicators, or KRIs? Percentage of Network Devices Not Meeting Configuration Standards – The total number of network devices (modems, routers, switches, etc.) I am ready to argue about this in the comments. Percentage of IT Assets (Devices) Impacted by End-of-Life or Support – The number of devices managed by the IT Department that are slated to be impacted by upcoming end-of-life (EoL) or end-of-support (EoS) dates. Key words: metrics, key risk indicators, management, risk, dashboard. Percentage of Systems Undergoing New Releases – All Systems – The total number of application or systems where a new release was completed or attempted by the IT function during the measurement period as a percentage of total systems managed. Recent big headline data breaches of customer data include; Target in 2013, Experian in 2017, and now Facebook in 2018. In our recent survey, KRIs were identified as one of the next major areas of research and investment for operational risk management departments. Importance of Key Risk Indicators (KRIs) ... Director, Enterprise Risk Management at ConEdison, Inc. based in New York, about Key Risk Indicators(KRIs). More Information. Here comes an interesting part. Number of Workstations Experiencing Hardware-related Performance Issues Within the Last 90 Days – The number of individual workstations that have experienced performance issues during the last 90 calendar days as a percentage of total workstations operated by the company. Most of the principles that we discussed for KPIs (Key Performance Indicators) apply to KRI: While the action plan indicator relates to the risk control procedures. Network Availability – The amount of time (measured in minutes) that the company’s network is available for use by all authorized users divided by the total amount of time the network is scheduled to be available for use over the same period of time, as a percentage. Below, we discuss how the users of BSC Designer can track their KRIs. Percentage of Devices Not Running Updated Anti-Malware Controls – The number of devices (workstations, servers, mobile devices) managed by the company that are not currently running fully up-to-date anti-malware protection as a percentage of total devices managed by the organization. It differs from a key performance indicator in that the latter is meant as a measure of how well something is being done while the former is an indicator of the possibility of … Percentage of Critical System Backups that are Not Fully Automated – The number of critical systems without an automated (i.e., no manual work required) backup currently configured and running accurately as a percentage of total critical system backups (automated and manual). Mean Time Between Failure (MTBF) – All Systems – The average amount of time (measured in days) elapsed between system failures, measured from the moment the system initially fails, until the time that the next failure occurs (including the time required to perform any repairs after the initial failure). These reports often are focused almost exclusively on the historical performance of the organization and its key units and operations. “Key” word implies that there cannot be hundreds of KRIs; so if you have 100+ KRIs, then most likely these are just risk metrics. Risk Management and Business Continuity Future proofing of information Training Cost/Cost Saving Benefits of an Information Management Strategy The Council Customers/clients Value of the Information Organising the Information Legal Compliance Electronic Working and Workflow ICT System Key Performance Indicators Conclusion Appendix I – Records Management Guidance Appendix II – … IT Service Desk – Mean Service Request Resolution Time (All Levels) – The average amount of time (measured in minutes) required for the IT support team to resolve, or close, an IT support request, measured from the time that the ticket or request is submitted by an employee until the issue has been resolved and formally closed. Both management and boards regularly review summary data that include selected KPIs designed to provide a high-level overview of the performance of the organization and its major operating units. Operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems, or external events. Develop or hire information management professionals: Without qualified and experienced professionals, information management will be limited in its impact on your organization. While the concept makes sense and easily fits within a risk gover-nance framework, the practical application and cultural ac-ceptance of KRIs face challenges at institutions of every size and composition. They link back to your operational risk management activities and processes, including risk identification; risk and control assessments; and the implementation of risk appetite, risk management, and governance frameworks. These non-supported systems may also be considered “legacy” systems. An insurance claims department might focus on fraudulent claims KRIs, while an IT project management team might worry about server redundancy to measure and avoid system downtime risk. What are Key Risk Indicators? When mapping business strategy we always suggest making sure that there are: Compare this to the “probability,” “impact,” and “control plan” and you will see what I mean. Percentage of Firewall Rules Added or Changed Within Last 90 Days That Were Formally Documented – The number of changes to firewall rules that were applied to the company’s firewall (across all firewall applications/systems in use) that were formally documented according to the company’s policies/procedures as a percentage of total firewall rule changes applied within the last 90 calendar days. Percentage of Servers that have Not Received a Full Malware Scan Within Last 24 Hours – The number of servers that have not undergone a full, successful virus scan with that last 24 hours as a percentage of total active servers managed by the organization. Percentage of IT Projects That Exceeded Budget – The number of IT projects that exceed the initially developed budget parameters as a percentage of total IT projects completed over the same period of time. Isa (2009:4) ponders that the embedding of records management into the risk management function is a long-term exercise to ensure that records consideration is at the heart of all management processes. from month-to-month. KRIs are metrics used to provide an early signal of increasing risk exposure in various areas of the organization. When implementing key risk indicators, businesses often do not have a frame of reference to begin picking the most important KRIs for their company – use the list of KRI examples below to determine what areas of information technology pose a risk to your business operations today. Didn’t we use, Detecting/predicting threats/opportunities, Estimating the chance that they will happen (their probability), Lagging indicators aligned with business objectives, and an, The most important step is to implement in your company a proper. (Be sure to check our Banking KRIs top 35 list for future reference if you work in a bank). 1. Losing your key employee might be a threat on the one hand, but on the other hand you might find a new one that will bring to your company new skills and ideas. It’s much better than regular formal reporting of KRIs that has nothing to do with real problems. Deployed Hardware Utilization Ratio (DH-UR) – The ratio of number of servers that are running live applications used by the organization to the total number of servers currently managed, or deployed by the organization at the time of measurement. Percentage of System Releases Not Mirrored on Backup Systems Within 24 Hours Following Launch – All Systems – The number of releases that were successfully launched to the live environment that were not mirrored on backup systems within 24 hours following the successful launch as a percentage of total changes successfully performed during the measurement period. IT Service Provider SLA Adherence – The number of IT vendor service level agreements where the vendor has met or exceeded targets outlined in their corresponding Service Level Agreement (SLA) over the last 3 months as a percentage of total vendor, or service provider, activities and performance levels are governed by a formal SLA. When reading, replace “KPI” with “KRI” and you can easily use all the same ideas and recommendations. Risk Indicators and Thresholds are critical elements to the successful implementation of risk-based monitoring methodology into a clinical trial. Customizable busines process workflow templates. In an operational risk context a risk indicator (commonly known as a key risk indicator or KRI) is a metric that provides information on the level of exposure to a given operational risk which the organisation has at a particular point in time. The older definition of risk in ISO was “a chance or probability of loss,” while the latest ISO 31000:2009 defines risk as “the effect of uncertainty on objectives.”. A key risk indicator is a measure used in management to indicate how risky an activity is. Everything depends upon the business context (business objectives). Properly described strategy looks very similar to the properly done risk and control assessment. Rich describes KRIs and how they can be used to give management an early warning that there is a developing risk issue that needs to be addressed. Key risk indicators (KRIs) are an important tool within risk management and are used to enhance the monitoring and mitigation of risks and facilitate risk reporting. Percent Increase in Number of Attacks on Firewall (Weekly) – The percent difference in the number of attacks on the company’s firewall that were detected during the previous two calendar weeks. In some literature KPIs and KRIs are strongly divided, the first are responsible for business performance and the second are about risk. KPI definition, data wrangling and standardization to maximize your tech investments. Cost variance (CV) (planned budget vs. actual budget) 68. As an example of a typical KPI that is not a KRI that is often used is “Net Profit.”. KRIs are not that different from KPI; Risk Management frameworks are not that different from the Balanced Scorecard. Risk indicators are still indicators. Percentage of Workstations that have Not Received a Full Malware Scan Within Last 24 Hours – The number of workstations that have not undergone a full, successful virus scan with that last 24 hours as a percentage of total active workstations managed by the organization. A Risk Indicator can be qualitative (for example: a site monitor’s assessment of site quality) or quantitative information that is used to monitor identified risk exposures over time, and are in… that were found not to be in compliance the company’s pre-defined configuration standards as a percentage of total network devices under management at the same point in time. It combines indicators that allow estimating risk probability, risk impact, and risk control actions. 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