Seven capital virtues of predictive key risk indicators

Seven capital virtues of predictive key risk indicators: the positives and pitfalls in delivering predictive key risk models.

Extract from IPL eBook:

All businesses face a huge number of risks every day and managing these risks effectively is critical for success. People are generally poor at estimating risk intuitively and automated systems which report on things which have already occurred are an incomplete guide to the future.

Businesses need a way to predict risks ahead of time, in a way that people can understand. Key Risk Indicators take the popular concept of Key Performance Indicators and apply them in the context of risk management; making risks visible and comprehensible to business leaders. When combined with the principles of predictive analytics, Key Risk Indicators allow leaders to peer into the future, making them an extremely powerful Enterprise Risk Management tool.

More … http://www.ipl.com/papers/IPL – If you could see your Future would you Change your Strategy (eBook).pdf?