Fed examiner calls on banks to rethink KRIs

Most banks fail to establish explicit link between KRIs and identified risk exposures

The link between KRIs and risk exposures is often weak

The key risk indicators (KRIs) banks have developed for operational risk often fail to offer a true picture of the institution’s underlying exposures, a senior US bank examiner has said.

“I wish I had a dime for every time an op risk person was told by a business manager to build a KRI model that just has this needle going up until it gets to a certain point,” Richard Cech, a senior bank examiner for operational risk at the Federal Reserve Bank of New York, said on a panel at the OpRisk North

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here