SRI (summary risk indicator, PRIIPs)

The summary risk indicator (SRI) is the risk score on a scale of 1 (lowest) to 7 (highest) displayed in a PRIIPs KID. It combines two components: a market risk measure (MRM), derived from the volatility of the product's returns over its recommended holding period, and a credit risk measure (CRM), which reflects the risk that the issuer or obligor cannot pay. The two are combined in a regulatory matrix to give the final class.

For most UCITS funds the credit risk component is minimal because the fund's assets are ring-fenced, so the MRM dominates. The volatility thresholds behind the MRM are not the same as the SRRI buckets, which is why many funds moved category when they switched from KIID to KID.

Why it matters

The SRI is the risk number an EU retail investor now sees, and it is what suitability and appropriateness checks under MiFID II usually reference. Anyone storing risk scores from documents published across the 2022–2023 transition needs to know which methodology each score comes from; mixing SRI and SRRI values in one column silently corrupts comparisons.

In the API

The current published risk class is returned as riskRating, with a descriptive band.

json
{
  "riskRating": 4,
  "profile": {
    "riskBand": "medium",
    "kind": "index-tracking equity ETF"
  }
}

Example values. For a fund whose current document is a PRIIPs KID, this is the SRI; for a UK UCITS KIID it is the SRRI.

Common pitfalls

• The SRI does not measure liquidity risk or currency risk directly; the KID adds warnings for those in text.
• A fund's SRI can change at each KID update. Store the document date with the score.