Leading Key Risks Indicators: Methods and Cases


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  • Date TBA
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  • Level: Intermediate
  • 14 CPE Credits
  • Group-Live
  • Prerequisite: none
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  • US $1,995
  • Group discounts available

INSTRUCTOR

Ariane Chapelle, PhD    Read bio

course description

Requests for leading Key Risks Indicators are on top of the management priorities in most financial institutions. This practical, proven workshop led by a world leading expert in the field, will give to many a chance to benchmark their practice to the best available methods to select and design preventive KRIs, starting by understanding the drivers of operational risk in the financial services industry.

Through a combination of presentations and practical exercises, this seminar offers a full review of the role and attributes of KRIs in the financial services industry. It clarifies some confusing ideas about the topic and positions a risk indicators program is a risk management framework. It suggests a list of the best performing KRIs in some banking and financial markets activities and proposes a step by step method to select and design proactive KRIs.

Key Objectives and Learning Outcomes

After the course, participants should be able to:

  • Use practical tool to identify their top risk
  • Perform root cause analysis of risks and incidents
  • Understand the main drivers of their operational risks
  • Formulate actionable risk appetite statements
  • Define leading KRIs for their own activity
  • Select the most relevant KRIs given their business environment
  • Apply a method to choose appropriate threshold
  • Apply valuable rules of risk reporting

 Who Should Attend

  • Risk officers
  • Operational Risk Managers
  • Business officers
  • Operations officers
  • Internal Auditors
  • Consultants
  • Regulators

Testimonials

 “I attended a KRI workshop facilitated by Ariane, and I found the content to be very informative and useful. Ariane is a professional with a deep knowledge of her subject, who brings real world expertise to discussion and debate around effective KRIs. Input from Ariane would be value add to any organisation seeking to develop and align valid KRIs to their respective Operational Risks.”

Pat Nolan,  Head of Operational Risk and Excellence, Irish Life & Permanent Group

"Ariane is an experienced professional with detailed knowledge of operational risk environment. The workshop was very helpful mainly in terms of differentiation between KRI and KPI and definition of suitable KRIs. Although the group of trainees was quite diverse, Ariane was able to manage the course efficiently." 

Adam Bardún, Societe Generale, Eastern Europe

"I enjoyed the class very much and can't say enough about how effective the lessons were.  I am already applying what I learned during the course and implementing a lot of the ideas." 

Brian Soifer from MFS Investment Management

View more testimonials >>

Course outline

 Day One

Session 1: KRIs in a Risk Management Framework

  • Operational Risk Frameworks in the Financial Services
  • Pre-requisite for an effective KRI program
  • ORM framework: completeness vs. maturity
  • Several tools to conduct  risk identification

Class discussion and exercise: Identify the main risks to your business  

Session 2: Actionable Risk Appetite

  • Industry guidance on Risk Appetite
  • Template for actionable Risk Appetite
  • Risk Appetite Statements: Features and Examples
  • Cascading Risk Appetite: RCSA & Indicators

Class discussion and exercises: Formulate  risk appetite & tolerance statements for two of your top risks

Session 3: Features and types of leading KRIs

  • Features of leading KRIs
  • KRI, KPI, KCI: definitions and uses.
  • A typology of Key Risks indicators
  • KRIs: metrics of risks drivers
  • Root cause analysis & identification of risk drivers

Case study: examples of KRIs and risk drivers per activity
Class Exercise: root cause analysis for KRI identification: the bow tie

Session 4:  Monitoring KRIs

  • Golden rules of reporting
  • Risk reporting: escalation vs. aggregation
  • Reporting on KRIs: aggregating colors?
  • KRI design:  frequency,  thresholds,  reporting and discipline

Class discussion and benchmarking: KRI governance in different institutions

 Day 2

Session 1:  Control design and testing: leveraging on KCIs

  •  When to use process mapping
  • KCIs: assessing controls
  • Typology of controls
  • Typology of Human error (J.Reason)
  • Prevention by Design

Group work: Map a process to identify key controls and KCIs         

Session 2: Selective Preventive KRIs step by step

  • Six steps methods: Identify – Understand – Recycle – Define - Design – Validate
  • Building on previous results
  • Revisiting existing metrics
  • Upgrade your KRIs

Group work: identify and design your own KRIs

Session 3: Predictability and Governance: Validating KRIs

  • Governance around KRIs
  • How do you know it works? Validating KRIs
  • gures-free validation technique
  • Figures-based validation techniques

 Class discussion: KRI definition and governance in different institutions

Session 4: Risk Culture, Conclusion and wrap-up

  • KPIs and the shaping of behavior
  • KRIs and risk culture
  • Discipline indicators

Class discussion and benchmarking: the influence of indicators for risk culture.

 

In-house instruction is available.  Contact us to inquire.


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