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Enterprise risk management programs need to have mechanisms that management can use to measure their effectiveness. This is possible using key performance indicators (KPI) and key risks indicators (KRI). In this article, Alberto G. Alexander, Ph.D, MBCI explores this area.

The article covers:

  • Defining indicators in general, and KPIs and KRIs specifically.
  • KPIs are explored in greater depth before looking at the role of risk measurement and reporting in ERM.
  • How to implement a KPI/KRI program within an ERM framework.
  • Some best practices to implement a KPI/KRI program within an ERM framework are set-out.

Read the article (PDF).

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