Module 10 - Communication Flashcards
Describe 5 forms of communication
Internal - Info on biz position, sales, cashflow, profits
External Inwards - reporting on competition
External Outwards - reporting on company position
Informal - by word of mouth
Formal - via intranet, reports or newsletters
What is a risk metric
A quantitave or qualitative indicator of whether risk tolerance or appetite is within limits. For example market risk can have metrics of percentage of equity/ mismatch between assets and liabilities
Factors to consider for choosing a KRI
Regulation and compliance - risk limits Strategies and objectives Stackholder requirements - credit rating agencies Past losses and risk incidences It's risk assessments
What is a good KRI?
Quantifiable
Simple but not Simplistic
Tied to key objectives
Tied to an accountable individual
Can be externally benchmarked
Timely
Cost effective to measure (not too pricey to measure)
Useful for decision making
Tracked over time
Incorporates key risk drivers (probability, severity)
Based on consistent methodologies and standards
Good balance of leading and lagging indicators
Key components of a risk report to the board
Internal and External, qualitative and quantitative information
A summary of Key business risk and link to board discussions and targets
KPI’s linked to objectives and strategy. KRI’s and how they link to risk limits - any deviations and trends?
Upcoming milestones (regulator visit)
Key data trends
Summary of losses and key risk incidences