38. Key performance indicators for risk managers - Alex Sidorenko
Alex Sidorenko, is a risk management professional with 13 years of experience. He suggests that Key Performance Indicators (KPIs) for risk managers should be divided into two categories: formal KPIs that are easy to understand and comply with, but do not give an indication of effective risk management, and real, meaty KPIs that are more difficult to achieve. He personally found satisfaction ratings given by the chair of the Risk Committee, the chair of the Audit Committee, the chair of the board of directors and the CEO to be useful indicators of whether he was doing a good job as a risk manager. He also suggests that a percentage of a project plan carried out successfully can also be a good indication of whether risk management has done a good job. He encourages others to share their thoughts on risk management KPIs and any quantitative KPIs for risk managers specifically.
Key insights
😄 The satisfaction rating given by various stakeholders can provide a better indication of a risk manager's performance than just relying on one individual's opinion.
🤔 The value of a risk manager's work may be undermined if the end users do not perceive or appreciate its importance, leading to doubts about the quality of their job performance.
📊 The speaker found another useful Key Performance Indicator (KPI) at the beginning of the first year.
😃 The satisfaction of key executives is a valuable key performance indicator for risk managers to measure the effectiveness of their services.
📊 The perceived value of risk management by other executives can be a good indicator of its effectiveness.
The key idea of the video is that measuring the satisfaction of stakeholders, including key executives, and obtaining feedback on the company-wide perception of risk management are valuable indicators of the effectiveness of risk management.
1. 00:00 📊 Risk management KPIs for risk managers are divided into formal and internal auditors, but in reality, they have little impact.
2. 01:11 💡 Effective risk management can be achieved through adherence to formal KPIs such as policies, procedures, frameworks, and risk assessments, although they may not provide a complete indication of effectiveness.
3. 02:16 📊 Writing satisfaction ratings given by various stakeholders provide a better indication of a risk manager's performance.
4. 02:57 📊 Doing a good job as a risk manager means effectively integrating decision-making processes at various levels and ensuring end users are satisfied with the value and understanding of risk assessments.
5. 03:36 💡 Another useful KPI for risk managers is introduced at the beginning of the first year.
6. 03:48 📊 The satisfaction of key executives is a key performance indicator for measuring the effectiveness of risk management.
7. 04:43 📊 Surveys on company-wide perception of risk management and feedback from executives are valuable indicators of the effectiveness of risk management.
Join this channel as a member for new videos, RAW workshops or online courses / @riskacademy
Read more risk management articles at https://riskacademy.blog/
Watch the best practical workshops and case studies from RISK AWARENESS WEEK https://riskacademy.vonza.com/
DOWNLOAD our risk management book for free. Number 1 in Google search globally with 200000+ downloads https://www.researchgate.net/publicat...
Or check out online short courses on Udemy https://www.udemy.com/user/alexsidore...
Check out awesome risk management quantitative software https://www.archerirm.com/insight-ris...
Enhance your company's risk management practices and improve the quality of your board's decision making with our advanced risk governance course, which covers everything from traditional risk management elements to advanced risk oversight and includes practical case studies and additional resources to strengthen your board's oversight. https://courses.dcroi.org/courses/ale...