Threshold (KPI)
Definition
The minimum or maximum value for a key performance indicator below or above which management action is required. Thresholds make a KPI actionable: without a defined threshold, a metric is informational only and does not create a governance obligation to respond. Every key performance indicator in the FFI Standard's Level 2 KPI framework must have a documented threshold.
Common Misapplication
The most common misapplication is setting thresholds at values the company has already exceeded, producing a dashboard where all metrics always appear within threshold without generating any management response requirement. Thresholds must be set at values that represent genuine risk boundaries, not comfortable midpoints.
FFI Standard Reference
This term is defined and applied in Book 6, Section 6.4: The KPI Framework Standard.
Related Terms
Citable URL
This term may be cited using the following permanent URL.
Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Threshold (KPI). https://ffistandard.org/glossary/threshold-kpi/. 2026.