Key Risk Indicator Dashboards
Businesses must realize that predictions regarding risk cannot be based on a single static measurement. Business units must understand that measurement of risk is a long term process and that operational risk can only be measured using a long-term perspective. Key risk indicators (KRIs) are usually a combination of various risk factors that include financial, operational and IT risk. KRIs help organizations track major operational risk. KRIs measure various risk factors over time.
The Challenges
Continuous visibility into current risk provides actionable intelligence, raising red flags that prompt managers to respond to events that can negatively impact the enterprise.
Challenges often arise because:
- Organizations do not maintain a central repository to track the effect of controls over time.
- Organizations rely on spreadsheet data that may not be available when needed.
- Employees or consultants may no longer be a part of the organization – knowledge of history is lost.
- Impact of inter-related controls may be too complicated to resolve with manual or semi-automated means.
The Solution
The Agiliance Key Risk Indicator (KRI) solution for Agiliance IT-GRC 3.0 provides a solution that accounts for risk and compliance in terms of internal policies, external regulatory compliance requirements for data protection and controls, key business risk indicators and enterprise risk management information.
The Agiliance KRI Solution is invaluable in answering:
- Are we adequately protected against credit card information theft?
- Do we have adequate security measures in place?
- Are our expansion plans going to disrupt production?
- Are the business units in Asia and Europe complying with regulations?
Agiliance IT-GRC 3.0 Implementation of KRIs
- Risk indicator architecture – Functional Risk Area; Key Risks; Individual KRIs
- KRI inputs – Agiliance supplied library; import from other sources; define your own
- Data collection infrastructure – Automated e-survey mechanism, Automated technical data
- KRI calculation – Standard-based formulas
- Dashboards – Intuitive multi-level user interface; Parameters can be defined for any entity; Full drill down
- Risk indicator information sources – Individual metrics; Contributions by practitioners (e.g. KRIeX )
- Risk indicator quantification – Threshold pair(s):normal to medium; medium to high;
- Simple, standards-based algorithms for composite risk
Benefits
The Key Risk Indicator Solution provides an effective reporting and dashboard solution that ties business and IT risk together in a normalized view, enabling organizations to prioritize key risks for the enterprise, monitor them over time, and express them as a value representing an overall risk rating.
- Provides a proactive approach to managing risk while providing better data to support the decision making process.
- Identifies gaps in the control functions that are not performing as expected, including appropriate staffing and asset allocation related to risk.
- Combines industry-standard IT KRIs, and orgaizational KRIs, in conjunction with the Agiliance Key Risk Library.
- The Agiliance Risk Management Module follows the guidance outlined by industry standards bodies, (including AS/NZ 4360, COSO and RMA) for driving its standards-based risk management process.