Risk managers must understand the end-to-end operational flow of their business, in order to effectively manage its risk. When designed properly, risk metrics provide a predictive warning of potential issues that may adversely affect the business. Key performance indicators and key risk indicators can be developed and tracked with enterprise risk management solutions.
- Capture optimal set of risk metrics and/or performance indicators.
- Achieve desired levels of performance.
- Evaluate Risk Profile relative to desired tolerance level.
- Institute system alerts tied to predetermined thresholds.