Choosing and Using Key Risk Indicators

Duration 90 Mins
Level Basic & Intermediate
Webinar ID IQW19J1003

  • Discuss the nature and types of preventive KRIs
  • Identify root causes and event drivers for each of your key risks
  • Quantify risk thresholds in line with risk appetite
  • Find out how indicators shape an organization’s risk culture
  • Decide strategies for effective reporting of risk indicators that lead to management action
  • Be able to discuss and evaluate the effectiveness of draft KRIs you have been considering for use in your organization

Overview of the webinar

This webinar will discuss the significance, nature and types of KRIs. The instructor will discuss how to develop, evaluate and implement KRIs in accordance with organization’s risk culture and create strategies for effective reporting of risk indicators that lead to management action.

Who should attend?

  • Risk Officers
  • Compliance Officers
  • Internal and External Auditors
  • Financial Controllers/ Officers
  • Operations Managers
  • Treasurers
  • Board Members
  • Business Managers
  • Investment Managers
  • Banks
  • Asset Managers
  • Broker/Dealers
  • Insurance Companies and all other financial institutions.
  • Operational Risk Managers
  • General (legal) counsel
  • CFOs (Chief Financial Officers)
  • COO (Chief Operating Officers)
  • CRO (Chief Risk Officers)

Why should you attend?

A Key Risk Indicator, also known as KRI, is a metric used in risk management to indicate the riskiness of an activity. KRI’s are important tools within risk management and are used to enhance the monitoring and mitigation of risks and facilitate risk reporting. KRIs enable risk managers to identify conditions that may result in losses and act upon them before actual losses are realized. Metrics also act as indicators of changes in the overall risk profile of a firm.

KRIs play an important role in risk management by highlighting areas of elevated risk and enabling timely action. KRIs enable firms to:

  • Identify current risk exposure and emerging risk trends
  • Highlight control weaknesses and allow for the strengthening of poor controls
  • Facilitate the risk reporting and escalation process
  • Support risk quantification and identifying opportunities to improve processes
  • Validate and enhance the risk assessment framework by linking KRIs to risk causes and allowing management to monitor exposure to adverse events Help define and set working level risk appetite based on event frequency
  • Assist with scenario analysis and stress test exercises as a means to scale and benchmark internal and external data
  • Establish business environment and internal control factors, a prerequisite for an advanced measurement approach to operational risk capital

Faculty - Mr. Stanley Epstein

Stanley Epstein has a Master’s in Economics, which he earned with a dissertation on financial innovation, and a Bachelor’s in Accounting. He has had extensive experience in banking and IT specifically the operations, payments, RTGS and the operational risk aspects of banking in the UK, Europe, the USA, Australia and Southern Africa. His bank-operations, payments systems, operational risk, and clearing house experience is wide ranging and includes working closely with organizations such as UNCITRAL, Deutsche Bank and CHIPS in New York; APACS, British Bankers Association, CLS and Barclays Bank in London; Crédit Agricole in France; UBS and Credit Suisse in Switzerland, the central bank in the Netherlands; Alpha Bank in Greece; the central bank in Romania; the central bank in Kazakhstan; Bank Leumi and the central bank in Israel; the Standard Bank, Clearing Bankers Association; Bankserv and the central bank in South Africa and ANZ and Commonwealth Bank in Australia.

 

Commencing his career at the Standard Bank of South Africa he gained a thorough grounding in all aspects of banking ranging from the bank’s branch system, back-office payments processing. He was also closely involved in the development of electronic banking at the Standard Bank. At a banking industry level he was involved in the creation and development of STRATE (Central Securities Depository) in South Africa dealing with the dematerialization, clearing and settlement of all financial instruments in that country. He also served as Vice Chairman of the South African Clearing Bankers Association’s ERAG Group (an interbank payments/operations risk initiative established to identify and eliminate operational, legal and other risks in electronic payments) and later as Chairman of the Payments Association of South Africa Operational Risk Committee.

On leaving South Africa he joined Fundtech Corporation, a leading provider of financial technology based in the US.

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