Key Risk Indicators

Key Risk Indicators

In order to have a clear picture of the circumstantial scenario that could testify to the possible occurrence of a risk in the short to medium term, the use of key indicators is recommended.

 

RED provides users with a convenient IT solution for the management of historical series of measurements through:

  • An integrated monitoring dashboard
  • A centralized archive of indicators
  • Analysis and in-depth analysis tools
  • Detailed reporting

The information related to an indicator is subjected to “predictive” analysis based on algorithms that determine:

  • The trend
  • The reliability of the trend (e.g. by applying the “Cox-Stuart test”)
  • Threshold limits (e.g.: Alert and Risk Tolerance)

The latter can be configured by choosing from:

  • Static thresholds, i.e. defined ex-ante when setting up kri
  • Dynamic thresholds, i.e. calculated according to an algorithm configurable a priori that processes the historical series of kri