Key Risk Indicators Case Study
Executive Summary
Key risk indicators as well as Key performance indicators play a very important role in dealing with operational risk. This assignment is aimed at educating the reader about Key Risk Indicators (KRIs); which are basic measurements, statistics as well as metrics within the organisation which gives a certain overview about the organisation’s risk position as well as Key performance indicators (KPIs); which are both quantitative and qualitative measures that are being used to see the business’ journey towards achieving its goals and objectives.
The importance of the KPIs and KRIs will also be discussed, giving the idea of their use within the organisation and how they both play a relevance towards operational risk, of which most books define as “the …show more content…
People risk can be defined as the risk that can arise for the errors from humans; certain deficits in the general expertise and also fraudulent behaviour, which may include a lack in following procedure that has been set by the business as well as general legislation (Study guide EKRP 211 Annexure B:35)
Practically, in terms of people risk that has arisen from the case studies of Eskom, the following was concluded;
• Scheduled load shedding was not correctly applied (Case studies-Eskom:6)
• Stage 2 load shedding should have been kept at stage two to allow for maintenance(Case studies-Eskom:6)
2.1.3 Technological (Systems) risk
Technological risk can be defined as the risk of a lack of deficiencies in the information system as well as the system collapsing from the operations (Study guide EKRP 211 Annexure B:36)
From the Eskom case studies, the following technology risks have risen;
• Failure to maintain basic infrastructure as well as maintaining the basic system (Case studies-Eskom:1)
• Unit 1 of Koeberg has thus been uled out of service and has reach a shut down (Case studies-Eskom:1)
• The was a collapse due to one of its coal storage silos, diesel shortages and maintenance issues (Case
Key risk indicators as well as Key performance indicators play a very important role in dealing with operational risk. This assignment is aimed at educating the reader about Key Risk Indicators (KRIs); which are basic measurements, statistics as well as metrics within the organisation which gives a certain overview about the organisation’s risk position as well as Key performance indicators (KPIs); which are both quantitative and qualitative measures that are being used to see the business’ journey towards achieving its goals and objectives.
The importance of the KPIs and KRIs will also be discussed, giving the idea of their use within the organisation and how they both play a relevance towards operational risk, of which most books define as “the …show more content…
People risk can be defined as the risk that can arise for the errors from humans; certain deficits in the general expertise and also fraudulent behaviour, which may include a lack in following procedure that has been set by the business as well as general legislation (Study guide EKRP 211 Annexure B:35)
Practically, in terms of people risk that has arisen from the case studies of Eskom, the following was concluded;
• Scheduled load shedding was not correctly applied (Case studies-Eskom:6)
• Stage 2 load shedding should have been kept at stage two to allow for maintenance(Case studies-Eskom:6)
2.1.3 Technological (Systems) risk
Technological risk can be defined as the risk of a lack of deficiencies in the information system as well as the system collapsing from the operations (Study guide EKRP 211 Annexure B:36)
From the Eskom case studies, the following technology risks have risen;
• Failure to maintain basic infrastructure as well as maintaining the basic system (Case studies-Eskom:1)
• Unit 1 of Koeberg has thus been uled out of service and has reach a shut down (Case studies-Eskom:1)
• The was a collapse due to one of its coal storage silos, diesel shortages and maintenance issues (Case