Key Risk Indicators (KRIs)

KRIs are measurable signals that warn of rising exposure to fraud, AMLor operational risk before losses occur. They translate a risk assessment into trackable metrics e.g., sanctions false-positive rate, manual review aging, ring-linked account share, model drift, or SIM-swap login rate. Strong KRIs have clear definitions, thresholds, owners, and data lineage. They are reviewed on fixed cadences, tie to risk appetite, and trigger action plans when breaching limits. In regulated programs, KRIs inform board reporting, audits, and model governance; they guide staffing, tuning scenarios, and prioritizing remediation backlogs. Effective suites balance leading indicators (precursors like velocity spikes) with lagging ones (chargebacks, SAR volumes). Aggregating KRIs into risk dashboards improves situational awareness, reduces firefighting, and enables earlier, cheaper interventions supporting demonstrable, risk-based compliance across products and geographies.