Key Risk indicators (KRIs) are measurable metrics or indicators that play an important role in proactively tracking exposures to operational risk. The current operational environment encompasses complex and innumerable processes, people with varying skill sets, business pressures, increasing dependency on technology applications and external impacts. Hence, tracking operational risks proactively across the enterprise poses a challenge that operational risk managers should successfully overcome.

KRIs are found to be extremely effective if identified, implemented and monitored across various business and support functions on an ongoing basis and supplement the other tools that are employed for the overall management of operational risks. In addition to monitoring the exposure to losses, KRIs communicate the risk appetite of the institution. The focus lies in selection of KRIs, setting thresholds, triggers and action steps followed by KRI aggregation and reporting while analyzing the relationship of KRIs with losses.

Research studies advocate linking of KRIs to causes, to proactively arrest occurrence of operational losses. However, establishing correlation between KRIs and operational risk losses is a challenge due to multi-factor relationship between losses and the risk drivers.

D&B TransUnion ADC KRI Lab^® laboratory is set up exclusively to develop KRIs across business and support functions of the financial institutions. The KRI Lab is engaged in continuously researching and developing KRIs within its overall practice of Operational Risk Management. The KRI Lab is established to support all financial institutions under an exclusive subscription agreement.

With its continuous research activities and association with institutions, KRI Lab has developed the following:

A repository of around 1200 KRIs that would be provided to the member banks upon subscription.

Technology application that helps to monitor the KRIs within the organization.

The product can be implemented and rolled out in 2/3 weeks.

D&B TransUnion's ADC KRI Lab^® subscription services are exclusive for the financial institutions implementing the tool "D&B TransUnion ADC KRI Lab^®".

The subscription provides access to the D&B TransUnion ADC KRI Library that comprises of risk indicators developed across various business and support functions of the financial institutions. The library will be updated on an ongoing basis to include indicators in the new areas of business activities as well as fine tuned KRIs that will be even more effective to track the risk.

The subscribing institutions can leverage on the collective experiences gained by other members and participate in forums, meetings, and web chats facilitated from time to time by us. These activities help in effective monitoring of operational risks and provide guidance for setting KRI thresholds in line with the operational risk appetite of the bank.

An exclusive subscription agreement will be entered with the subscribing institutions and all information exchanged through us will be kept confidential.