KRIs are forward-looking measures that signal when risk levels are approaching or exceeding tolerance thresholds, enabling proactive intervention. Unlike lagging indicators that report past events, KRIs predict potential future problems through trends and patterns. A manufacturing firm might track supplier delivery delays as a KRI for supply chain disruption, with three consecutive late deliveries triggering contingency planning. Effective KRIs are quantifiable, regularly monitored, linked to specific risks, and have defined escalation protocols when thresholds are breached.