Written by

Bernard Marr

Bernard Marr is a world-renowned futurist, influencer and thought leader in the fields of business and technology, with a passion for using technology for the good of humanity. He is a best-selling author of 20 books, writes a regular column for Forbes and advises and coaches many of the world’s best-known organisations. He has a combined following of 4 million people across his social media channels and newsletters and was ranked by LinkedIn as one of the top 5 business influencers in the world.

Bernard’s latest books are ‘Future Skills’, ‘The Future Internet’ and ‘Business Trends in Practice’.

View Latest Book

Follow Me

Bernard Marr ist ein weltbekannter Futurist, Influencer und Vordenker in den Bereichen Wirtschaft und Technologie mit einer Leidenschaft für den Einsatz von Technologie zum Wohle der Menschheit. Er ist Bestsellerautor von 20 Büchern, schreibt eine regelmäßige Kolumne für Forbes und berät und coacht viele der weltweit bekanntesten Organisationen. Er hat über 2 Millionen Social-Media-Follower, 1 Million Newsletter-Abonnenten und wurde von LinkedIn als einer der Top-5-Business-Influencer der Welt und von Xing als Top Mind 2021 ausgezeichnet.

Bernards neueste Bücher sind ‘Künstliche Intelligenz im Unternehmen: Innovative Anwendungen in 50 Erfolgreichen Unternehmen’

View Latest Book

Follow Me

The Difference Between a KPI and KRI

2 July 2021

Even though many organisations use the terms Key Performance Indicators (KPIs) and Key Risk Indicators (KRIs) interchangeably, they actually are two different tools with different purposes. Let’s take a look at what they are and how they are different.


Key Performance Indicators (KPI)

Key Performance Indicators (KPIs) are the gauges and measurements an organisation uses to understand how well individuals, business units, projects and companies are performing against their strategic goals.

Once an organisation has identified its strategic goals, KPIs serve as monitoring and decision-making tools that help answer your organisation’s key performance questions.

For more information on KPIs you can:

Key Risk Indicators (KRI)

Key Risk Indicators (KRIs), as the name suggests, measure risk. KRIs are used by organisations to determine how much risk they are exposed to or how risky a particular venture or activity is.

KRIs are a way to quantify and monitor the biggest risks an organisation (or activity) is exposed to. By measuring the risks and their potential impact on business performance, organisations are able to create early warning systems that allow them to monitor, manage and mitigate key risks.

Effective KRIs help to:

  • Identify the biggest risks.
  • Quantify those risks and their impact.
  • Put risks into perspective by providing comparisons and benchmarks.
  • Enable regular risk reporting and risk monitoring.
  • Alert key people in advance of risks unfolding.
  • Help people to manage and mitigate risks.

The relationship between KPIs and KRIs

While KPIs help organisations understand how well they are doing in relation to their strategic plans, KRIs help them understand the risks involved and the likelihood of not delivering good outcomes in the future. This means KRIs can be the flipside or KPIs.

Here are three examples that illustrate this relationship:

  1. A company might establish a KPI to measure IT system performance and a complementary KRI to track IT vulnerability to cyberattacks.
  2. Perhaps a company creates a KPI to monitor its market share growth because that’s a key business objective. A KRI linked to the same goal could monitor the risks of losing market share due to customer shifts or new competition.
  3. A company might measure staff engagement or staff satisfaction as important KPIs and monitor the likelihood of losing key staff and the risks to their employer brand as KRIs.

So, in a nutshell:

KPIs and KRIs are not the same. KRIs help to quantify risks, while KPIs help to measure business performance.

Where to go from here:

How Do You Develop Key Risk Indicators (KRIs)? And How Do They Differ From KPIs?

What Is A Leading And A Lagging Indicator? And Why You Need To Understand The Difference


Business Trends In Practice | Bernard Marr
Business Trends In Practice | Bernard Marr

Related Articles

The Top 5 Tech Trends In 2024 Everyone Must Be Ready For

Once again, we’ve reached the time of year when we look ahead at what technology has in store for us in 2024.[...]

The Amazing Ways Coca-Cola Uses Generative AI In Art And Advertising

Some say that in the very near future, we’ll need to either adopt artificial intelligence (AI) or be made redundant by it – or by others using it.[...]

The 5 Biggest Risks of Generative AI: Steering the Behemoth Responsibly

In our contemporary world, the pressures of the professional sphere often encroach upon our personal space, giving rise to stress and an overwhelming sense of dread.[...]

3 Ways To Reinvent Your Products And Services For The Future

With the rise of the metaverse and web3 technologies, there’s no denying the next evolution of the internet is already underway.[...]

Virtual Influencer Noonoouri Lands Record Deal: Is She The Future Of Music?

Teenage influencer Noonoouri has 400,000 followers on Instagram and has starred in fashion campaigns for Dior, Balenciaga and Valentino.[...]

Managing Stress at Work: 5 Top Tips Anyone Can Follow

In our contemporary world, the pressures of the professional sphere often encroach upon our personal space, giving rise to stress and an overwhelming sense of dread.[...]

Sign up to Stay in Touch!

Bernard Marr is a world-renowned futurist, influencer and thought leader in the fields of business and technology, with a passion for using technology for the good of humanity.
He is a multi-award-winning and internationally best-selling author of over 20 books, writes a regular column for Forbes and advises and works with many of the world’s best-known organisations.
He has a combined following of 4 million people across his social media channels and newsletters and was ranked by LinkedIn as one of the top 5 business influencers in the world.
Sign Up Today

Social Media

0
Followers
0
Followers
0
Followers
0
Subscribers
0
Followers
0
Subscribers
0
Yearly Views
0
Readers

Podcasts

View Podcasts