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A foundation for KPI and KRI
Key performance indicators and key risk indicators are the two critical ingredients of sound operational risk management. Peter Vinella sets out to provide a consistent definition of op risk factors in terms of these two concepts
![kpi1-gif kpi1-gif](/sites/default/files/styles/landscape_750_463/public/import/IMG/059/81059/kpi1-gif0700-580x358.gif.webp?itok=u95d1-fm)
With the announcement of Basel II, operational risk factors (ORFs) and the role they play in a compliant op risk management practice has become a paramount issue.
The Accord states that business environment and control factors must be used in any measurement of operational integrity and risk to quality for the advanced measurement approach (AMA)1 – the approach favoured by most banks subject to Basel II. Unfortunately, the Accord itself provides very little insight or guidance as to how ORFs
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