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.

[e-vegdeliveries]

Alex very informative presentations.Question how can the risk manager overcome biases from the various senior managers? From my experience most managers have hidden agendas that Risk will not agree with.

[TanyaYacapiloveyou]

I and my risk manager are working on our KPIs that should be aligned with our job description. However, we are having a problem because our HR department want it to be quantifiable. Do you have KPI template that is quantifiable? We would love receiving if for free. Thank you.