In this section, you can create KRIs (Key Risk Indicators), which are used to monitor specific risks according to the associated loss events.
For example, one of the risks entered in the register is that the organization will lose 10,000 dollars a year in law suits related to product safety. Loss events are then registered for each lawsuit with the amount lost in each case. A KRI can be created to monitor these events, generating alerts for different threshold levels.
Risk owners can then be kept informed when the values they estimated in losses for that year are reaching or exceeding certain thresholds. This allows them to decide if the controls associated with the risks are effective, and allows them to adjust their loss estimates for the following year.
When creating a KRI, you must select a type of risk to be associated with it, as well as the type of loss event that will be monitored. Filters can be created using any of the default or custom fields of a loss event so that only values from events matching those filters will be considered in the calculation.
Next, a custom or default numeric field from the type of loss event selected and the type of operation to be executed on the values of that field can be defined - for example, an average of the value entered in a Number attribute, created to indicate the amount of time each support representative spends on the phone resolving a ticket. Finally, a scale must be created to define the threshold values, the names for each value, and the color to represent each.
Once saved, you can check the results of the KRIs created in the Monitor KRIs section of this solution.