GlossaryEN1 min readUpdated: Jun 26, 2026
Key Risk Indicator
Key Risk Indicators (KRIs) are metrics designed to detect emerging threats in supply chain processes before they cause disruption.
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Source: https://www.iso.org/iso-31000-risk-management.html
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Incoterms 2020 Simulator: Who bears costs & risk?
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Definition & Explanation
Key Risk Indicators (KRIs) are metrics designed to detect emerging threats in supply chain processes before they cause disruption. Each KRI monitors a predefined threshold—such as supplier on-time performance, inventory coverage days, or transport failure rates on specific lanes—and triggers mitigation action when that threshold is breached. The critical distinction from Key Performance Indicators (KPIs): KPIs measure whether a target has already been met; KRIs signal whether a risk is approaching a critical level. Freight forwarders and logistics operators use KRIs to track supplier concentration risk, rising customs inspection rates, or freight capacity shortages. Well-calibrated KRIs are a core element of proactive risk management and add an operational early-warning function to the risk register.
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