Reporting the KRIs

Ann Rodriguez and Viney Chadha

Effective risk management requires robust internal communication about risk, both across the organisation and through reporting to the board and senior management. (Bank for International Settlements, 2001)

Risk is like fire: If controlled it will help you; if uncontrolled it will rise up and destroy you. Theodore Roosevelt

TELLING THE STORY

This chapter will covers how to create a reporting and analytics process for reporting to the board, senior management and other key stakeholders. A risk management framework exists to anticipate, prevent, identify, assess, monitor, control and mitigate risks. While all the elements of a strong enterprise and operational risk programme contributes to this lifecycle, without a robust reporting framework that leverages key risk indicators, even the best programme will not be effective in managing the risks of the firm.

What is in the reporting framework

Reports are the main products of risk management functions. They are tangible and quantitative, and if well done they are actionable – ie, lead to prevention or early detection and mitigation of problems. In the event of a fire, losses can be avoided through responding to a smoke