ABSTRACT
Key risk indicators (KRIs) are a powerful tool in monitoring operational risk in a timely and ongoing fashion. Of all operational risk management tools, KRIs are the most closely aligned to how any engineering processes are risk monitored using dashboards of warning lights and alarm sounds. The objectives of using KRIs in operational risk management are many and varied. They may be used to achieve one or more of the following: monitor operational risks in as close to a real time mode as possible; detect problems as part of an ‘early warning system’. The three main types of KRIs are: single number KRIs; composite KRIs; and qualitative KRIs. As KRIs are developed across the business, it is useful to create a KRI library. This library stores all KRIs and can be used by other business units and business areas. In order to create a library, the KRI needs to be ‘catalogued’.
