Risk Metrics and Key Risk Indicators  

This course breaks down KRIs and how they can help you spot potential risks before they become problems. You’ll learn how to develop KRIs that fit your organisation, measure and monitor risks like a pro, and integrate these indicators into your existing risk management strategy. Packed with real-world examples, it’s all about making risk management straightforward and effective. Join us and take your skills to the next level.

Key topics covered:

1. Objectives of risk metrics

• The benefits and value of risk metrics

• Case study on the power of metrics 

2. What are risk metrics

• Examples of risk indicator systems

• Formal and informal risk metric systems 

3. What are risks and controls

• Breaking down the components of risk – causes, risks, impacts and controls

• Introduction to risk bow ties

• Using risk bow ties as the basis for risk metrics 

4. Types of risk metrics

• Key risk indicators, key performance indicators and key control indicators

• Mapping risk metrics to bow ties

• Single number and composite risk metrics

• Leading and lagging metrics

• Detective controls and risk metric 

5. Identifying relevant and strong metrics

• Link to key risks and risk appetite

• Strength of relationship to what is being tracked

• Mapping risk metrics to risk bow ties

• Quality of indicators

• Using averages, deviations and concentrations 

6. Setting up risk metrics

• Setting risk metric thresholds

• Cascading risk metrics

• Developing a risk metric library

• Linking risk metrics to risks and controls

• Determining collection and reporting frequency

• Assigning responsibility

• Revising tolerances 

7. A risk metrics process

• Collecting risk metrics

• Evaluating and scoring risk metrics

• Investigating and explaining risk metrics

• Escalation, follow up and workflow 

8. Reporting risk metrics

• Objectives of reporting

• Types of reports

• Aggregated dashboards and drill down reports

• Using risk metrics in an overall risk profile

• Integrated and dynamic reporting 

9. How to use risk metrics

• As a risk monitoring tool

• As feedback and incentive tool

• As a management tool

• As a benchmarking tool

• Forecasting

• Risk metrics for culture 

10. Roles and responsibilities for risk metrics

• An introduction to the three lines model

• Metrics roles