Key
Risk Indicator
To base capital
on internal and external loss data alone is backward
looking. Key Risk Indicators are a forward looking
metrics for managing events before they occur. They
are also used to support specific data sets in the
model such as scenario analysis.
| Features |
- Key Risk Indicators
in KRI are linked to controls, risks
and other variables of the system.
- Ability to
accept a varied type of indicators that
are collected by many different users
in alternately defined periods (daily,
weekly, monthly, bi-monthly and quarterly).
- Each risk indicator
is assigned to a specific business unit,
product and location for reporting and
management purposes.
- Staffs are
reminded to collect specific indicators
through emails that are automatically
transmitted.
- Ability to
highlight which Key Risk Indicators
are performing poorly and the associated
underlying risks is an automatic process
for the KRI.
- ETL module to allow auto loading of
client specific KRI templates and survey
details.
- Auto escalation rules to track the
progress of KRI.
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| Benefits |
- Key Risk Indicators can be correlated
for evidential information on capital.
- Ensure responsibility for collection
is enforced at business unit level.
- Key Risk Indicator dashboards can
be used to monitor specific business
units that may be presenting potential
threats to the risk management effectiveness
of the bank.
- Dashboards are able to show exposure
at a glance particularly with high risk
business activities.
- The Dashboard is not only sensitive
to key risk indicators that are out
of tolerance but the system also monitors
other statistical factors to show where
performing business units have “spikes”
in their data.
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