The document outlines a framework for risk management, performance management, and tracking strategic objectives using key performance indicators (KPIs) and key risk indicators (KRIs). It establishes measures for evaluating risks and performance, including thresholds for acceptable limits and risk appetite. It emphasizes the interaction between risk exposure and performance status to guide strategic initiatives and mitigation actions.

1. Risk Action
Risk Management
Performance
Management
Strategic
Objective
KPI Measure #1 (Lag) Target
KPI Measure #2 (Lead) Target
Performance Goal
Red-Yellow Limit = X% of Target
Yellow-Green Limit = Y% of Target
KRI Measure #1 (probability)
KRI Measure #2 (consequence)
Risk Appetite
Red-Yellow Limit = X [1...25]
Yellow-Green Limit = Y [1…25]
25
1
Probability/Likelihood
(risk event) [1…5] = f (KRI #1)
Consequence/Impact
(risk event) [1…5] = f (KRI #2)
KPI #1 Status
KPI #2 Status
Risk Exposure (Status)
f (Risk A, Risk B exposures) Risk A Exposure
Risk B Exposure
Risk A (risk event)
Performance Status
f (KPI #1,KPI #2 statuses)
Strategic Initiatives
Performance Action
Risk Mitigation Initiatives © 2015 - Strategic System Consulting