Risk Management Advisory & Consulting

Riskpro, India

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Key Risk Indicator (KRI) Library –Overview

Overview
 A comprehensive KRI Library for Banking Industry.
 About 400-500 KRI established across common business lines, activities and products.
 Highly cost effective. The KRI Library can take Banks upto a few weeks to effectively
design and approve. Purchase the KRI library at a small fee and save on salary costs.
 Developed by Riskpro professionals having experience in Operational Risk and Banking.
 KRI Library in an excel spreadsheet format – with data fields as illustrated in next slide.

Timeline and Review process

 After mandate, the KRI Library is discussed initially for relevance and depth. If
necessary, changes are made.
 Final discussion, finalization and delivery of KRI Library in a formatted excel file.
 Customization and establishing thresholds (Threshold for Red, Yellow and Green levels)
for each KRI can be undertaken as an add on project.

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KRI Library Format

KRI Format Data Fields Business Lines Covered

Section
KRI Mapping Basel II Business Line Retail Banking
Main Business Process
Sub Process / Activity
Commercial Banking
Basel II Operational Loss type
Corporate Finance

Key Risk Short write up of Key risk that this KRI Trading and Sales
addresses

Payment and Settlements

KRI Details KRI - Definition in words
KRI – Numerator – Quantitative Metric Agency Services
KRI Denominator – Quantitative Metric
KRI Type (Leading, Lagging) Investment Banking
KRI Frequency
KRI Comments

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 Example KRI
KRI Format Data Fields KRI Example
Section
KRI Mapping Basel II Business Line Retail Banking
Main Business Process Central Operations
Sub Process / Activity Cheque clearing operations
Basel II Operational Loss type Execution, Delivery and Process Failures

Key Risk Short write up of Key risk that this KRI Fraudulent inward cheques erroneously cleared
addresses

KRI Details KRI - Definition in words
KRI – Numerator – Quantitative Metric
KRI Denominator – Quantitative Metric
Number of fraudulent cheques cleared per
month
Number of inward cheques, with fraudulent
alterations, wrongly cleared for payment by
clearing centre during the month
Monthly volume of cheque clearance

KRI Type Lagging KRI

KRI Frequency Monthly
KRI Comments The KRI only captures
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Pricing Information

Product Product Details Price Information

Description

An excel spreadsheet (database) of approximately

450+ Key Risk Indicators typically used by Banks to
KRI Library - measure and monitor operational risk in Banks.
Banking
These KRI cover most of the common risk events and INR 15,000
operational losses, process lapses and fraud events. (inclusive of all taxes)

KRI are tagged to the Basel’s Business Lines, Main

Process, Sub processes and Operational Loss Type where
applicable. This enables effective analysis using Pivot
tables.

Your team’s salary costs for 1-2 weeks could be a lot more
than the price

Notes:
 The KRI Library – Banking is an excel based spreadsheet, and populated as one KRI per line, such that
these can be easily uploaded to any other vendor software ore can be integrated in the Bank’s RCSA
efforts / Risk Management Frameworks
 Delivery – Within 3 days of confirmed order.
 Payment – After product delivery, within 10 days of invoice
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 Summary of KRI Database
Summary of Key Risk Indicators

Count of KRI Column Labels

Business Client Damage to Employment Execution, External Internal Not Grand Total
Disruption Services Assets practice Delivery and Fraud Fraud applicable
Failure
Row Labels
Agency Services 7 1 8

Commercial Banking 1 32 4 7 5 49

Corporate Finance 2 7 2 1 12

Retail Banking 6 30 3 58 49 19 165

Trading and Sales 3 1 40 1 11 6 62

Support Function 13 2 13 61 4 18 111

Bank level 2 2 15 8 2 29

Payment and Settlements 1 4 4 9

Asset Management 7 2 9

Retail Brokerage 2 1 3
Grand Total 22 43 5 16 228 60 70 13 457

Above is indicate of the types and categorization of KRI. The number and spread will evolve as
these KRIs are updated constantly.

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 Sample Extract of the KRI
Business Process Sub Process Key Risk Basel Loss Type KRI KRI Type Frequency Numerator

Branch Banking Branch Operations Accounts opened without Execution, Delivery Number of accounts opened with Lagging Monthly Total number of customer accounts opened with
complete documents and Failure incomplete documents incomplete documents as per policy documents

Branch Banking Branch Operations Multiple accounts for Execution, Delivery Number of customer with multiple Lagging Monthly Number of customer with multiple accounts (same
same customer and Failure accounts under different names product type) under different names using
different address, different identity documents

Branch Banking Branch Operations Lien not marked on Term
Deposits and other
securities pledged as
collateral
Branch Banking Branch Operations Customer complaints,
potential liabilities arising
from procesing after cut
off times
Branch Banking Branch Operations Risk of Frauds at Branches
Execution, Delivery Number of reported instances Lagging Monthly Number of reported instances where Term
and Failure where Term deposits received as deposits received as collateral were not lein
collateral were not lein marked marked
Execution, Delivery Number of customer requests Lagging Monthly Number of customer requests processed after cut
and Failure processed after cut off dates off dates
Execution, Delivery Number of days when Branches are Leading Monthly Number of cummulative days when all bank
and Failure not manned Branches are not guarded during the period

Branch Banking Branch Operations Loss of secured stationery Internal Fraud Number of reported instances of Lagging Monthly Number of reported instances of theft/loss of
theft/loss of secured stationery secured stationery

Retail Banking Branch Operations Misuse of Bank Internal Fraud Number of reported instances of Lagging Monthly Number of reported instances of misuse of Branch
Operations letterheads/stationery misuse of Branch letterheads letterheads and other stationery
Retail Banking Branch Operations Absence of CCTV Execution, Delivery Number of branches operating Lagging Monthly Number of branches operating across the network
Operations and Failure without CCTV without any CCTV or an inoperative CCTV at period
end

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Benefits of purchasing KRI Library
 According to RBI Guidelines, although not mandatory, it is highly recommended to have
a robust KRI Framework.
 KRI play a vital role in the Advanced Measurement approach (AMA)
 KRI help to link key risks with operational loss events / near miss.
 Since KRI are quantitative, risk management becomes more meaningful and visibility of
risk management efforts is apparent.
 Banks can benefit from substantial savings in employee costs
 Banks will not have to spend endless hours to design, debate and finalise KRIs. These have
been designed as such and ready to be used.
 Banks only need to define the thresholds and set these breach limits and escalation mechanism.

 Get a head start. Most of the business activities are covered. Hence, the KRI
framework can cover most of the top risks and can start to deliver value from Day one.
 Easy to use. Excel format enables upload to database, vendor software and to be
integrated in other business process tools.
 A one time payment for the KRI library. Future changes and additional KRI are provided
free of cost.

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Who is Riskpro… Why us?
ABOUT US
 Riskpro is an organisation of member firms
around India devoted to client service
excellence. Member firms offer wide range
of services in the field of risk management.
 Currently it has offices in three major cities
Mumbai, Delhi and Bangalore and alliances
in other cities.
 Managed by experienced professionals with
experiences spanning various industries.
VALUE PROPOSITION
 You get quality advisory, normally delivered
by large consulting firms, at fee levels
charged by independent & small firms
 High quality deliverables
 Multi-skilled & multi-disciplined organisation.
 Timely completion of any task
 Affordable alternative to large firms
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MISSION
 Provide integrated risk management
consulting services to mid-large sized
corporate /financial institutions in India
 Be the preferred service provider for
complete Governance, Risk and Compliance
(GRC) solutions.
DIFFERENTIATORS
 Risk Management is our main focus
 Over 200 years of cumulative experience
 Hybrid Delivery model
 Ability to take on large and complex projects
due to delivery capabilities
 We Hold hands, not shake hands.
 Risk Management Advisory Services

Basel II/III Advisory Corporate Risks Information Security

 Market Risk  Enterprise Risk Assessment  IS Audit
 Credit Risk  Fraud Risk  Information Security
 Operational Risk  Risk based Internal Audit  IT Assurance
 ICAAP  Operations Risk  IT Governance
SERVICES

Operational Risk Governance Other Risks

 Process reviews  Corporate Governance  Business/Strategic Risk
 Policy/ Process Review  Business Strategic risk  Reputation Risk
 Process Improvement  Fraud Risk  Outsourcing Risk
 Compliance Risk  Forensic Accounting  Contractual Risk

Training Recruitment
 Banking – E Learning  Virtual Risk Managers
 Corporate Training  Full Time Risk Professionals
 Regular Risk Management Training  Part time Risk Professionals
 Online Training material  Risk Managers on call – free
 Workshops / Events

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Contacts

MUMBAI DELHI BANGALORE

Manoj Jain, Director Rahul Bhan, Director Casper Abraham, Director
B-44 Glaxo Building, Near C-561, Defence Colony, No. 62/B Modi Residency
Mt. Mary’s Steps, Bandra New Delhi-110 024 Millers Road, Benson Town
(W), Mumbai 400050 Bangalore 560 046
M- 98337 67114 M- 99680 05042 M- 98450 61870
E- manoj.jain@riskpro.in E- rahul.bhan@riskpro.in E- casper.abraham@riskpro.in

Email : info@riskpro.in

Web: www.riskpro.in

THANKS

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