7

Indicators

What do we mean by key?

Key performance indicators and key risk indicators

Establishing KRIs and KCIs

Targets and thresholds

Periodicity

Identifying the leading and lagging indicators

Action plans

Dashboards

Summary

WHAT DO WE MEAN BY KEY?

Key risk indicators (KRIs) are a fundamental part of any comprehensive operational risk management framework and yet many firms seem to be puzzled and confused by them. The confusion might be less if they were called IRKs (indicators of risks which are key) or IKRs (indicators of key risks). They are definitely not ‘key’ risk indicators as this leads to far too many indicators.

Many firms have identified several hundred indicators and are trying to manage their businesses by using this number ...

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