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Updated in [July 27th, 2023]

KPIs are important for businesses because they provide a value to compare against current performance, illustrate whether goals are being reached, and allow for setting goals, devising strategies, and evaluating performance. This course is designed to provide a brief study of KPIs, as well as metrics and key risk indicators. Four additional reasons why KPIs are important include strengthening employee morale, supporting and influencing business objectives, fostering personal growth, and being critical for performance management. A key risk indicator (KRI) is a metric for measuring the likelihood that the combined probability of an event and its consequences will exceed the organization's risk appetite and have a profoundly negative impact on an organization's ability to be successful. KRIs provide metrics regarding risks and their potential impact on business performance, and serve as an early warning capability for monitoring, analyzing, managing and mitigating key risks. Key performance indicators, on the other hand, demonstrate how well the organization is performing against its goals and objectives. They can be applied to people, processes and technologies that are critical to an organization's success.

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