The trouble with KRIs

KRIs are often considered hard to deal with, but op risk managers aren't dismissing them just yet. By Dianne See Morrison

A key risk indicator (KRI) has a seemingly simple definition: it is a measure that can be used to monitor either the level of risk in an organisation, or the quality of controls around that risk.

But while KRIs are now widely used at the top-tier financial institutions on Wall Street and in the City, a question mark still hangs over them – especially in terms of their effectiveness, and how best to use them. In some instances – and this is especially true of smaller firms – operational risk