Key Performance Indicators (KPIs) are widely known and used. When it comes to Key Risk Indicators (KRIs), however, things look rather differently. KRIs are early warning signs indicating change in the risk profile of a company. They enable top management to identify potential risks in the internal and external business environment that may affect the company’s ability to achieve its strategic and operational goals early on and take active countermeasures. KRI systems are an important element of an effective strategic risk management process. Nevertheless, many companies either don’t use them at all or only insufficiently. So, what should be kept in mind when developing KRI systems?

It is that time of the year again when leading politicians, business people, academics, and intellectuals from all over the world gather in the idyllic Swiss ski resort of Davos to discuss current global challenges at the World Economic Forum’s annual meeting. Prior to the event, the World Economic Forum has released its Global Risks 2014 Report. The report not only provides a forecast of the key risks that most likely will demand our attention in the next five to ten years, but also looks at current trends in risk management and suggests strategies for companies to build resilience to the shocks from systemic global risks that may impact them in unexpected ways.