Risk Metrics and Key Risk Indicators
An RMIA Virtual Course in partnership with The Protecht Group.
The measurement of risk greatly assists in its management, yet the measurement of particularly non-financial risk is providing elusive. Risk metrics are the key.
This practical workshop is aimed at risk practitioners and business managers who have implemented or are looking to implement, a robust and comprehensive Key Risk Indicator capability within their organisation.
The workshop covers all aspects of setting up, running and developing KRI processes that can be used both as an essential component of the overall risk management framework as well as a powerful tool to assist management in the day to day control of the business.
1. Understanding Risk For The Purpose of Identifying Good Metrics
- Revisiting risks and controls —what are risk metrics “indicating”
- Understanding risks and controls using Bow Tie analysis. Causes, Events, Impacts and Controls.
- A risk framework – where do KRIs fit?
- Case Study: Developing a Risk Bow Tie
2. Defining KRIs
- What is a KRI? Comparing KRIs, KCIs and KPIs
- Defining the objectives of KRIs
- What are we trying to track?
3. Identifying KRIs
- Identifying key risks: How?
- Mapping key risks to identify “red flags” and “symptoms”
- Identifying KRIs around the key risks
- Types of KRIs:
- Single / Composites
- Qualitative / Quantitative
- Generic and Specific KRIs
- Leading and Lagging KRIs
- Case Study: Identifying KRIs
4. A KRI Library
- Purpose and contents of a KRI library
- Maintaining and improving the library
- Using the library
5. Assessing The Quality of KRIs
- Strength of relationship to what is being tracked
- The importance of risk velocity
- Leading or lagging
- Ease of collection
6. Setting Up KRIs
- Linking KRIs to risk and controls
- Setting KRI thresholds
- Determining collection and reporting frequency
- Assigning responsibility
- Case study: Setting up KRIs
7. The KRI Process
- Collecting KRIs
- Evaluating and scoring KRIs
- Investigating and explaining KRIs
- Escalations, follow up and workflow
- Case Study: Conducting a KRI collection procedure
8. Reporting KRIs
- Types of report
- Aggregated dashboard and drill-down reports
- Using KRIs in an overall risk profile
- Integrated and dynamic reporting
9. Using KRIs
- As a risk monitoring tool
- As a feedback and incentive tool
- As a management tool
- As an input into the risk quantification and capital model
- As a benchmarking tool
- A focus on key risks. KRIs for Risk Culture.
10. The Future of KRIs, Risk Data and Analytics
- Where to next?
- Proactive management of risk
- Predictive analytics and the value of Big / Good Data
Format of the Course
This course is delivered in an entirely online COVID-Safe format. The course is a total of six (6) hours delivered in four 90-minute sessions.
TRAINER: David Tattam from The Protecht Group
Author of 'A Short Guide to Operational Risk', David Tattam is an internationally recognised specialist in all facets of risk management, particularly at the enterprise level. David is the founder and current Director Research and Training for the Protecht Group, an Australian firm specialising in risk management software, consulting, advisory and training to a wide range of clients both locally and overseas. His career includes many years working with PwC, as well as two international banks. His achievements include the creation of the Middle Office (Risk Management Department) for The Industrial Bank of Japan in Australia and the complete implementation of all Australian operations, systems, procedures and controls for Westdeutsche Landesbank (WestLB). David’s passion is risk training, having developed numerous risk courses and trained many thousands over the past 2 decades. Protecht celebrated its 21st year in 2020.
PRICE: $715.00 incl.GST for Members
$858.00 incl. GST for Non-Members
CPD: 12 points
For Group Bookings please email firstname.lastname@example.org or call 0430 157 508.
To register for this event go to Upcoming Events for current courses available.