Challenges

Ann Rodriguez and Viney Chadha

There are several challenges that have impeded KRIs from achieving their value proposition. Much of the problem has been the lagging maturity of enterprise risk management as a function and discipline. There are discrete organisational challenges in implementing KRIs as part of an ERM framework, such as organisational silos and a poor risk culture, which will be discussed in more detail later in the book. This chapter will focus on operational challenges that an organisation faces as it implements a KRI programme.

OPERATIONAL CHALLENGES

Data and social challenges can both make the first steps toward developing a KRI framework seem daunting. Managing these issues, however, can insure the long-term success of the programme. Since we will spend time throughout the book talking about culture, it is worth noting that social challenges differ from cultural challenges. Social challenges are those that are inherent to human beings: how our personal experiences mold our interpretation of information and events both before and after they occur. Mindfulness and a willingness to challenge assumptions can help mitigate social challenges. Cultural challenges are more organisational, with