{"id":14058,"date":"2024-04-10T20:57:56","date_gmt":"2024-04-10T20:57:56","guid":{"rendered":"https:\/\/zhorse.net\/?p=14058"},"modified":"2024-04-10T21:07:03","modified_gmt":"2024-04-10T21:07:03","slug":"proactive-risk-identification-a-kci-story","status":"publish","type":"post","link":"https:\/\/zhorse.net\/erm\/proactive-risk-identification-a-kci-story\/","title":{"rendered":"Proactive Risk Identification: a KCI story"},"content":{"rendered":"\t\t
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Introduction:<\/span><\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Let me tell you a story. Back in my early days as a risk manager at a big US based bank, we were all about Key Risk Indicators (KRIs). We had a top 10 list, and every month, we’d religiously track them. We worked hard to design them, assign responsible parties and of course track them – Manually, which in itself implied a lot of work-.\u00a0 We had to present these KRIs at the board of directors every month and we were so proud because they were consistently green!\u2013 everything seemed under control.<\/p>

Fast forward a few months, and reality hit us like a hurricane. We faced a significant risk event, one we thought we were prepared for based on those green KRIs. It was a humbling experience and we learned the hard way that green KRIs don\u2019t really tell the whole picture. But as good risk managers we learn from our mistakes.\u00a0<\/p>

My team focused on finding an answer to the problem and the solution was staring us in the face. Key Control Indicators, They provide timely feedback on the effectiveness of the controls you have in place to mitigate risks. Used properly, they can tell you if your risk management resources are well allocated and even offer a glimpse into the future \u2013 a chance to see the “winds shifting” before a storm hits.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Here are some benefits of properly used KCIs:<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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