HARMAN Risk Intelligence

KRI Monitor

Key Risk Indicators — Real-time threshold monitoring · 8 active KRIs

2

Critical

5

Warning

1

OK

18.4% above contract
KRI-01

Memory Spot Price Variance

CRITICAL

Measures the percentage deviation of DRAM/NAND spot market prices versus contracted rates. Sustained variance above 5% triggers commercial recovery review.

Current

18.4 % above contract

Threshold

5 % above contract

Critical

15 % above contract

vs. prior period:+6.2%
Apr 27, 2026
0Threshold: 5Critical: 15
3risks
KRI-02

Open HD1 Risks Without Mitigation Plan

WARNING

Count of risks in HD1 (Awareness) stage that have been open for more than 10 business days without a documented mitigation plan.

Current

3 risks

Threshold

2 risks

Critical

5 risks

vs. prior period:+1%
Apr 27, 2026
0Threshold: 2Critical: 5
2programs
KRI-03

Programs with Schedule Variance > 2 Weeks

WARNING

Number of active programs with a critical-path schedule variance exceeding 2 weeks against the OEM-agreed SOP milestone.

Current

2 programs

Threshold

1 programs

Critical

3 programs

vs. prior period:0%
Apr 27, 2026
0Threshold: 1Critical: 3
5.1$M
KRI-04

Unmitigated Tariff Exposure

CRITICAL

Total financial exposure from active or proposed tariff changes that do not yet have a confirmed contractual pass-through or mitigation agreement with the customer.

Current

5.1 $M

Threshold

1 $M

Critical

3 $M

vs. prior period:+1.8%
Apr 27, 2026
0Threshold: 1Critical: 3
62/ 100
KRI-05

Supplier Financial Health Score

WARNING

Composite financial health score (based on D&B ratings) for the top 20 Tier-1 and critical Tier-2 suppliers. Scores below 70 trigger enhanced monitoring.

Current

62 / 100

Threshold

70 / 100

Critical

55 / 100

vs. prior period:-8%
Apr 27, 2026
0Threshold: 70Critical: 55
71%
KRI-06

HD5 Realization Rate (Rolling 90 Days)

WARNING

Percentage of risks that have progressed from HD1 to HD5 (financial realization confirmed) within 90 days. Measures the effectiveness of the mitigation lifecycle.

Current

71 %

Threshold

80 %

Critical

60 %

vs. prior period:+4%
Apr 27, 2026
0Threshold: 80Critical: 60
1.8% of revenue
KRI-07

Cost of Poor Quality (CoPQ) as % of Revenue

OK

Total cost of warranty claims, scrap, rework, and customer returns as a percentage of automotive segment revenue. Target is below 2% per HARMAN quality policy.

Current

1.8 % of revenue

Threshold

2 % of revenue

Critical

3 % of revenue

vs. prior period:-0.3%
Apr 27, 2026
0Threshold: 2Critical: 3
4escalations
KRI-08

Open Customer Escalations

WARNING

Number of active formal customer escalations (written complaints or executive-level issues) across all regions. Tracked weekly.

Current

4 escalations

Threshold

3 escalations

Critical

6 escalations

vs. prior period:+1%
Apr 27, 2026
0Threshold: 3Critical: 6

KRI Interpretation Guide

OK

KRI is within acceptable range. No immediate action required. Continue standard monitoring cadence.

WARNING

KRI has breached the threshold. Escalate to Risk Management Lead. Mitigation plan required within 5 business days.

CRITICAL

KRI has breached the critical threshold. Immediate escalation to VP Customer Excellence required. Emergency mitigation session within 48 hours.