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KPI of the Day – Risk Management Performance: # Preventive risk controls

preventive controls


Measures the number of preventive controls put in place. Preventive controls aim to deter or prevent undesirable risk events from occurring.


To reflect the emphasis and effort put into preventing risk events from happening, thus indicating the effectiveness of active risk control.


An effective control framework manages risks and supports planning, stewardship, compliance, and informed decisions that help management achieve operational objectives. Besides preventive risk controls, detective and corrective controls are equally important to form a complete risk control framework.

Controls to reduce risk related occurrences provide a preventive approach to risk management. An effective risk management strategy will focus on # Preventive risk controls to detect possible risk related occurrences and generate timely response rates.

Regularly monitoring # Preventive risk controls, provides an assessment of the manner in which preventive strategies are implemented within the organization. Periodical evaluation of this key performance indicator minimizes the negative impact of risk related events, by preventing them from happening or alleviating loss.

Recommended practices on risk prevention include:

  • Assigning accountability to key risk control personnel;
  • Regular internal investigations of risk generating factors;
  • Tailored control measures to analyze and minimize negative impact;
  • Corrective action design to counteract damaging occurrences;
  • Continuous risk assessment for a robust risk management approach.

When it comes to limitations, it should be noted that accurate reporting on this KPI relies on a well-maintained system that records relevant data. This KPI does not provide information on the validation or performance of risk controls.

If you are interested in more Risk Management-related KPIs, subscriptions provide access to +500 KPI examples.

Our dedicated Library contains relevant resources to improve your KPI practices, and if you want to further improve your knowledge, feel free to explore our latest publications – The Governance, Compliance and Risk KPI Dictionary and The Top 25 Risk Management KPIs – 2016 Extended Edition, or enroll in our Certificate in Risk Analysis and Risk Management training course.

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