John Le
New Member
Dear David @David Harper CFA FRM and who may concern !
i am interested in KRIs _ Key Risk Indicators ! it is quite controversal (in my thoughts). For me, understading KRI has 2 parts
i) Key risks and (ii) Indicators, so before we have any INDICATOR, we must know / or predict Potential " KEY RISKS" in fields we might set INDICATORs.
But, my wondering that, KRIs are the same with Risk LIMITs, Risk Appetites.... because, RIsk Limits, Risk Appetites contain (i) Key risks and (ii) Indicators. Many books/ or Risk management websites talk about : KRIs are Early warning indicator, help banks to identify risks ... but for me KRIs are general name, so KRIs might be risk limits, Risk appetite .. .or whatever indicators.. as long as they reflect 2 things [(i) Key risks and (ii) Indicators ] and having thresholds in order to monitor their risk trend !
So, who can clarify me , what is different between KRIs with Risk LIMIT, Risk Appetite ! When set up KRIs, How First line of defense and Second line of defense in bank cooperate together/ or leave first line of defense does it alone !
Thank you very much
i am interested in KRIs _ Key Risk Indicators ! it is quite controversal (in my thoughts). For me, understading KRI has 2 parts
i) Key risks and (ii) Indicators, so before we have any INDICATOR, we must know / or predict Potential " KEY RISKS" in fields we might set INDICATORs.But, my wondering that, KRIs are the same with Risk LIMITs, Risk Appetites.... because, RIsk Limits, Risk Appetites contain (i) Key risks and (ii) Indicators. Many books/ or Risk management websites talk about : KRIs are Early warning indicator, help banks to identify risks ... but for me KRIs are general name, so KRIs might be risk limits, Risk appetite .. .or whatever indicators.. as long as they reflect 2 things [(i) Key risks and (ii) Indicators ] and having thresholds in order to monitor their risk trend !
So, who can clarify me , what is different between KRIs with Risk LIMIT, Risk Appetite ! When set up KRIs, How First line of defense and Second line of defense in bank cooperate together/ or leave first line of defense does it alone !
Thank you very much
