Risk Indicators

Risk indicators are signals or clues that suggest a higher likelihood of encountering problems or negative outcomes. They help organizations identify areas where issues might arise, such as financial instability, operational inefficiencies, or compliance violations. By monitoring these indicators—like unusual transaction patterns or declining performance—they enable proactive actions to mitigate potential risks. Essentially, risk indicators act like early warning systems, guiding decision-makers to address vulnerabilities before they develop into more serious issues.