The importance of preventive KRIs

Developing key risk indicators, or KRIs, is a prerequisite for effective risk management. Ariane Chapelle of the University of Brussels highlights four risk drivers that can form a basis for a suite of KRIs: failed key performance indicators, failed controls, ‘cause of the cause’ and environment

Useful risk indicators help identify rises in probabilities of occurrence of incidents early enough to prevent them. In Paris, taxi meters are limited to eleven hours per day, preventing cab drivers overworking, since tiredness is a well-documented contributor to car accidents. Generally speaking, knowing the risk drivers of incidents is a requirement for their prevention. It is also a requirement for selecting effective KRIs, or key risk indicators.

Risk drivers are well known in many areas