Risk Register
A risk register is a crucial document in risk management processes that provides a detailed log of risks identified during a risk assessment. It includes Key Risk Indicators (KRIs), identifies risk owners, and specifies the risk threshold, helping organizations to monitor and manage risks effectively. Let’s look at each of these in turn:
- KRIs: KRIs are an essential element of a risk register. They serve as metrics that provide an early signal of increasing risk exposure in various areas of the organization. KRIs act as early indicators of risk and so are instrumental in anticipating potential problems and allowing organizations to enact proactive measures to mitigate such risks. A KRI in a financial institution could be the number of failed transactions in each period, identifying potential issues in the transaction process that could lead to more significant risks if not addressed promptly.
- Risk owners: Assigning risk owners is a fundamental step in...