As risk professionals, you might have heard about the Key Risk Indicators or KRI as they are called. But do you know how to construct effective KRI. Or better still, do you know how powerful KRI are to the organisation. We invite other Risk professionals to share their experiences with KRI and how they have benefited. KRI have thus far being the domain of the Banking industry, but in our opinion even other industries can benefit from these indicators. For example the hospitality industry could develop several key risk indicators using cash handling, customer complaints etc. One KRI that might apply to the hotel industry could be as follow. Ratio of : Number of complaints received during the month / Occupancy numbers during the month This KRI provides an insight into the relationship between occupancy and complaints. High ratio indicates inefficient operations of the hotel and likely reputation risk for the organisation. An increasing number over several months means that the company is not responding well to customer requirements during their stay or that the staffing is not adequate for the operation volumes. As you can see from the above example, the data sets used to design the ratio are coming from customer service domain and marketing or sales domain. The mix of both into a meaningful ratio has brought about a completely different view on operations of the hotel. On the other hand, in a traditional view of data in this same hotel, the Business Unit head of customer service will view data point such as number of complaints, number of outstanding complaints, number of customer complaints resolved etc. The sales dept will review MIS such as occupancy levels, % of online bookings, type of customers occupying rooms etc. But designing relationship between different datasets bring about whole new meaning and transforms data into predictors of future risks and loss trends. Riskpro, a risk management consulting firm in India, assists organisation to benefit from this power of KRI. At Riskpro, we believe that well constructed and implemented KRI can be your on crystal ball to predict the future. KRI are so powerful that you are able to visualize trends through simple ratios that are not otherwise visible, even with gigabytes of data. KRI are simple to realize and read as MIS data points, but extremely difficult to implement and design.