KPI/KRI SYSTEM FOR BUSINESS SUSTAINABILITY AND A MONITORING DASHBOARD FOR MANAGERIAL DECISION-MAKING

Abstract

This paper proposes a practical method for designing a business sustainability measurement system that combines key performance indicators (KPI) with key risk indicators (KRI) and embeds them into a management decision loop. The approach integrates management control with risk management by selecting a minimal‑sufficient set of indicators based on controllability, data availability, ownership and review frequency; defining traffic‑light thresholds and escalation rules; and verifying post‑action effects through KPI dynamics. Indicators are structured into environmental, social and governance (ESG) blocks and complemented with core financial and operational metrics to preserve business viability. The study delivers a KPI/KRI taxonomy (outcome KPI, leading KPI, KRI), a three‑level monitoring dashboard architecture (strategic, tactical, operational), and an indicator–formula–owner–threshold–action matrix that links each threshold breach to a predefined decision package (corrective and preventive actions, resource reallocation, governance escalation). Scientific novelty. The contribution is an integrated KPI–KRI design where risk signals trigger standardised managerial actions and effectiveness is assessed through measurable KPI shifts, reducing ad‑hoc responses and improving accountability. Practical value. The framework is implementable in SMEs with spreadsheet/BI tools and can be aligned with international sustainability and risk governance frameworks. The model supports consistency with disclosure logic and helps translate high‑level goals into operational controls. Limitations relate to data quality and the need to calibrate thresholds using historical variability, sector benchmarks and risk appetite; therefore, implementation should include a pilot period and periodic revision of indicator definitions. Alignment. The dashboard can be mapped to SDGs targets and to common reporting structures (GRI and ISSB), while internal controls follow ISO 31000/22301 and ERM logic. For example, energy intensity and waste‑to‑output KPIs may be paired with KRIs on incident frequency, overdue corrective actions and critical‑role turnover to trigger escalation before financial performance deteriorates.