Can a KPI Also Be a KRI?

While Key Performance Indicators (KPIs) and Key Risk Indicators (KRIs) serve different primary purposes, in some cases, a metric can function as both.

KPI: Measures performance against business objectives.
KRI: Indicates potential risks to business objectives.

A metric can be both a KPI and KRI when:

  • It directly relates to a critical business objective.
  • Its performance impacts both operational success and risk exposure.

Example: Customer Churn Rate

  • As KPI: Measures retention performance
  • As KRI: Indicates risk of revenue loss

Dual-Purpose Metric Formula:

Metric Value = (Performance Impact × Risk Impact) / (Monitoring Frequency)

For a comprehensive analysis of the relationship between KPIs and KRIs, explore our guide: Integrating KPIs and KRIs for Holistic Performance and Risk Management.

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