Mastering Risk Management

Approaches to KRI identification

Management support is essential for establishing indicators of risks which are key. There are various approaches to identifying indicators of key risks and key controls. Some of these are more likely than others to attract management support and drive.

They are:

• ■using a blank sheet of paper
• ■using existing management information
• ■using an existing risk and control self-assessment.

Blank sheet of paper

Many firms start their identification of KRIs by starting with a blank sheet of paper and setting down all the indicators they are able to articulate. This has the advantage that there are no preconceptions, but it ignores any previous risk management work, in particular risk and control self-assessments.

Senior ...