RISKPRO INDIA • Riskpro is India’s first national practice dedicated to risk management services and training, corporate governance, and global regulatory compliances • Risk can be defined as a prospect of loss or reduced gain that can adversely affect the achievement of an organisation’s objectives • When greed overtakes need, it spells trouble. Manifested as ‘bankruptcy’ in much of the developed world and ‘corruption’ closer to home, greed has clearly disrupted some major industrialised economies and enhanced the risks of doing business • In today’s world, risks are not few. The reason companies so often fail to systematically manage their key risks is rooted in the way they define the risks they face. Risks are manageable and the answer to untapped business opportunities that lie dormant waiting for risk factors to turn favourable • Riskpro was founded in 2009 with offices in Mumbai, Delhi, and Bangalore and it has already added eight member firms in Ahmedabad, Agra, Chennai, Gurgaon, Hyderabad, Jaipur, Ludhiana, and Pune. All our offices and member firms are well equipped and staffed with qualified professionals viz. CA, CWA, CS, CPA, CIA, CISA, CFA, and MBA • Riskpro’s founders are qualified risk management specialists with extensive work experience in Europe and USA in several industries and financial institutions • Riskpro aims to be the preferred service provider for large and medium enterprises on risk protection, corporate governance, and global regulatory issues; delivering state-of-the-art quality and timely services at viable rates RISKPRO SERVICES • Our four major practice specialisations /service lines are:  Risk: Enterprise Risk Management (services and training & recruitment)  Governance: Corporate Governance and Transparency  Compliance: Global and Indian Regulatory Compliances  Training: in all of the above service lines • The Risk Practice deals with all classes of risks and processes viz. governance, strategic, systemic /infrastructure, compliance, reporting, and financial reporting. Processes require that key risks are properly identified, measured, monitored, controlled, and reported. Processes may also require tools like risk based internal audit, information security testing, and fraud investigations, to be employed • The Governance Practice deals with corporate oversight and risk governance issues within an organization including business continuity planning, compliance with SEBI guidelines by listed companies, regulations relating to independent directors, investor expectation and protection, Clause-49 on corporate governance, etc • The Compliance Practice covers a wide range of regulatory and environmental compliances including Sox, IFRS, Solvency II, Basel II /III, Corporate Laws & Direct Tax Code etc • The Training Practice comprises of a variety of structured and /or industry specific training programs and modules designed and conducted by Riskpro experts and trainers at onsite (client or other offices) and offsite (Riskpro Training Centre) training facilities RISKPRO VALUES • Adding value to the client and protecting their business is paramount and our logo symbolizes that bond of protection • Delivering professional excellence in all our service lines with complete integrity • Building enduring relationships with all our clients as a trusted business partner

1. Risk Management Advisory & Consulting
Riskpro, India
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2. 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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3. 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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4. 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 Number of fraudulent cheques cleared per
month
KRI – Numerator – Quantitative Metric Number of inward cheques, with fraudulent
alterations, wrongly cleared for payment by
clearing centre during the month
KRI Denominator – Quantitative Metric Monthly volume of cheque clearance
KRI Type Lagging KRI
KRI Frequency Monthly
KRI Comments The KRI only captures
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5. 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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6. 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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7. 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 Execution, Delivery Number of reported instances Lagging Monthly Number of reported instances where Term
Deposits and other and Failure where Term deposits received as deposits received as collateral were not lein
securities pledged as collateral were not lein marked marked
collateral
Branch Banking Branch Operations Customer complaints, Execution, Delivery Number of customer requests Lagging Monthly Number of customer requests processed after cut
potential liabilities arising and Failure processed after cut off dates off dates
from procesing after cut
off times
Branch Banking Branch Operations Risk of Frauds at Branches 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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8. 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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9. Who is Riskpro… Why us?
ABOUT US MISSION
 Riskpro is an organisation of member firms
around India devoted to client service  Provide integrated risk management
excellence. Member firms offer wide range consulting services to mid-large sized
of services in the field of risk management. corporate /financial institutions in India
 Currently it has offices in three major cities  Be the preferred service provider for
Mumbai, Delhi and Bangalore and alliances complete Governance, Risk and Compliance
in other cities. (GRC) solutions.
 Managed by experienced professionals with
experiences spanning various industries.
VALUE PROPOSITION DIFFERENTIATORS
 You get quality advisory, normally delivered
by large consulting firms, at fee levels  Risk Management is our main focus
charged by independent & small firms
 Over 200 years of cumulative experience
 High quality deliverables
 Hybrid Delivery model
 Multi-skilled & multi-disciplined organisation.
 Ability to take on large and complex projects
 Timely completion of any task due to delivery capabilities
 Affordable alternative to large firms  We Hold hands, not shake hands.
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10. 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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11. 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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