Technology key risk indicators (TKRI) are metrics used to measure the risk of an IT system or process. In other words, they provide a numerical value that indicates how much risk is associated with a particular system or process.
TKRIs are often used by companies to monitor their systems and processes in order to make sure they are running as efficiently and effectively as possible. Thresholds depends on risk appetite of an enterprise risk management program of an organizations.
According to risk trends, technology is an integral part of the modern business environment. In order to stay competitive in our digital age, organizations need to be equipped with the necessary tools and techniques for maximizing their potential. One such tool that enables efficient management of technological risks is Key Risk Indicators (KRIs).
KRIs are designed to identify, measure, monitor, and control key business attributes within a given organization or system.This blog post will provide examples of different technology KRIs so that you can better understand how they work and the benefits they offer your business.
Examples of Technology Key Risk Indicators
TKRIs can be used to measure a variety of different risks, including security risks, operational risks, financial risks, compliance risks, etc. Common examples of technology key risk indicators include patch management status (i.e., how up-to-date is the software).
User authentication success rate (i.e., how often users are able to successfully authenticate when logging in), system uptime (i.e., how often the system is available for use), and incident response time (i.e., how quickly issues are addressed by IT personnel).
Changes in system performance
Examples include a decline in response times, increased error messages, or other data inconsistencies.
Unusual user activity
This security breach could include an increase in logins from unauthorized users or drastic changes in access patterns for authorized users.
Expired certificates or license keys – These can be used to identify outdated software and alert administrators to any possible vulnerabilities caused by using old versions.
Security alerts from external sources and ongoing risk monitoring – Regularly monitoring security alerts from trusted sources can help organizations stay ahead of emerging threats.
Increased hacking attempts – Monitoring for large numbers of hacking attempts can indicate early warning that a potential attack is underway.
Scope of Attack Surface
This KRI measures the size and complexity of an organization’s attack surface, which is the total number of possible points of entry that hackers can use to gain access to a system or network. The larger the attack surface, the more vulnerable an organization is to cyber-attacks.
Presence of Malware
Malware is malicious software designed to disrupt or damage computer systems, networks, or other sensitive data elsewhere. This KRI monitors for any malware on a network or system to detect and prevent cyber-attacks.
Unpatched or Misconfigured Systems
Unpatched systems are those that have not been updated with the latest security patches, while misconfigured systems are those that have been improperly configured and may be vulnerable to attack.
This KRI monitors unpatched or misconfigured systems to ensure all systems are properly secured against potential threats.
This KRI monitors for any third-party vendors or partners that may pose a risk to an organization’s security due to their lack of security protocols or practices. Organizations should ensure that all third-party vendors adhere to their security policies to minimize the risk of exposure to data breaches from external sources.
This KRI measures the financial impact that a cyber-attack could have on an organization, including costs associated with recovery efforts as well as lost revenue due to downtime caused by the attack.
What is a key risk indictor (KRI)?
A key risk indicator (KRI) is a metric used to measure the likelihood of an event or set of events that could negatively or significantly impact an organization’s ability. KRIs provide organizations with a way to quantify and monitor potential risks, allowing them to take proactive steps to mitigate any potential harm.
KRIs can be used in many different ways, from measuring the performance of certain processes or activities, to predicting future risks. They are often used as part of an enterprise risk management (ERM) system, which helps organizations identify and manage their risks more effectively.
KRIs must have three essential characteristics in order to be effective: they must be measurable, quantifiable and accurate. This means that the KRI must be able to provide clear data about the risk it is measuring, so that it can be tracked over time and compared against other indicators.
Key risk indicators, or KRIs, measure the likelihood that an event’s combination risk and consequences exceeds an organization’s risk appetite and has significant negative consequences. The Key Risk Indicator is crucial to the success of enterprise risk programs.
The Benefits of Technology Key Risk Indicators
Using TKRIs offers many benefits for organizations that leverage them correctly. By tracking the most significant risks of these indicators over time, companies can identify potential problems before they become major issues, resulting in improved efficiency and cost savings.
Additionally, tracking these indicators can help companies stay compliant with various industry standards and regulations by providing them with the necessary data to demonstrate that they have taken adequate steps to mitigate any potential risks associated with their systems and processes.
How to develop Key Risk Indicators for your business continuity management review
In the first phase you have to identify the company goals as well as the vulnerabilities causing risks. Key risk management focuses mainly on identifying the major threats. These risks include those whose potential is greatest, if not the most severe, or those outside your company’s control.
Once you identify your KPIs, then you can start creating the KRIs easily. The KPIs show what really is important to your organisation. The new system helps eliminate time devoted on the most important elements of the business. The KRIs you choose will have an appropriate, quantitative and timely effect.
Identification of Potential Risks
The first step in using KRIs is to identify potential risks that could impact your technology systems. This includes identifying any potential vulnerabilities or weaknesses, such as a lack of security measures or inadequate training for personnel.
It also involves assessing the likelihood that these key risks will be exploited and understanding the potential impact on your organization if they are not addressed. Once identified, these risks should then be monitored using key performance indicators (KPIs).
Monitoring Performance with KPIs
KPIs provide an objective way to measure performance and identify areas where improvements need to be made. Common KPIs include system uptime, response times, customer satisfaction ratings.
In monitoring performance with KPIs, organizations can quickly identify any issues or areas where corrective action needs to be taken in order to improve performance.
It helps organizations proactively address any potential risks before they become bigger problems down the line.
Implementing Automated Alerts
Once you have identified and monitored your KRIs and KPIs, it is important to implement automated alerts so that you can immediately respond when something goes wrong. Automated alerts allow organizations to quickly
address any issues that arise as soon as possible in order to minimize downtime and ensure that customers receive a satisfactory experience when using their services or products.
Automated alerts can also help organizations save time by eliminating manual monitoring processes and enabling them to focus on more important tasks.
Business impact analysis
Business effects analysis (BIA). A system used to evaluate the possible effects of interruption in key business functions in case of an accident. BIA helps businesses identify the key activities critical to business operations.
The goal of the BIA is minimising negative impact on business operations. BIA is usually performed by professional business continuity and disaster management personnel and should be regularly reviewed for accuracy and currentness in the field.
Automation—The Role of GRC Tools in a Metrics Program
GRC (Governance, Risk and Compliance) tools are becoming increasingly important in the modern business world. Automation is a key component of GRC tools, allowing organizations to streamline their processes and ensure that they remain compliant with regulations.
Organizations use metrics programs to measure performance and identify areas for improvement. They provide an objective way to assess the effectiveness of different organizational processes and activities.
GRC tools can be used to automate certain aspects of a metrics program, such as collecting data from various sources, analyzing it, and reporting on results. This allows organizations to quickly identify trends or issues that need to be addressed.
Automation also helps reduce costs associated with manual data collection and analysis. Organizations can save time and money by automating certain tasks within a metrics program while still ensuring accuracy and consistency in their results.
Finally, automation can help improve communication between departments within an organization by providing a centralized platform for sharing information about metrics programs across different teams.
This allows everyone involved in the process to have access to the same information at all times, making it easier for them to make informed decisions and collaborate on projects or initiatives related to metrics programs.
Corporate objectives and policies set by senior management and other authoritative sources help develop a risk register and database. Risk registration is used to prepare a risk profile and provide questionnaires to conduct a risk evaluation.
Challenges of developing key risk indicators
The first challenge is identifying which risks should be monitored and measured. Organizations must analyze their current operations and identify potential threats that could negatively affect their business objectives. Once these risks have been identified, they must determine which indicators best measure them.
The second challenge is determining how often KRIs should be monitored and updated. Organizations need to decide on a timeline for monitoring their KRIs to ensure they remain current with changing conditions.
Overall, developing key risk indicators can be a complex process but one that is essential for any organization looking to stay ahead of potential threats and protect its assets from harm.
According to a recent poll conducted by the CEO’s of Nymerro Clinical Consultancies Service, Cyntegrity and Nyrro Clinical Consulting Services, 22% of executives said calculating kri was a major problem for them. Another problem companies face when employing KRIs are:
Technology Key Risk Indicators (KRIs) are essential tools for any organization looking to secure its systems against potential threats or vulnerabilities while improving its overall performance levels. By utilizing KRIs along with KPIs and automated alerts, organizations can proactively monitor their technology systems and take corrective action when needed in order to ensure maximum security, reliability, and customer satisfaction levels at all times. With proper implementation of KRIs, organizations can maximize their efficiency while minimizing their overall technology risk exposure levels.
Chris Ekai is a Risk Management expert with over 10 years of experience in the field. He has a Master’s(MSc) degree in Risk Management from University of Portsmouth and is a CPA and Finance professional. He currently works as a Content Manager at Risk Publishing, writing about Enterprise Risk Management, Business Continuity Management and Project Management.