Risk metrics and key risk indicators.

The measurement of risk greatly assists in its management, yet the measurement of particularly non-financial risk is providing elusive. Risk metrics are the key.

David Tattam, Chief Research and Content Officer at Protecht, presents this practical course aimed at risk practitioners and business managers who have implemented or are looking to implement, a robust and comprehensive Key Risk Indicator capability within their organisation.

The course covers all aspects of setting up, running and developing KRI processes that can be used both as an essential component of the overall risk management framework as well as a powerful tool to assist management in the day-to-day control of the business.

Course overview

In this course, you'll learn:

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 metrics

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

Course expectations

• Watch 12 videos 
• 3 downloadable materials
• Answer 10 quiz questions

Timings

• 4 hours of video content
• Approximately 5 hours for the whole course

Cost

• US$600 payable by credit card on registration

Next steps

You can purchase and access this course on-demand via Protecht Academy by credit card.

Please contact Protecht directly if you would like to discuss packages to implement this training across your organisation. Bulk discounts are available and packages can be invoiced in your local currency.