This presentation will discuss Nordea’s considerations when defining risk limits and Key Risk Indicators for some of the level 2 operational risk areas – the level below operational risk.
- What is the purpose of the risk limit and Key Risk Indicators, why are they needed?
- Discussion regarding design principles for Key Risk Indicators
- How to balance between quantitative and qualitative risk indicators
- Should there always be an option to “override” the quantitative outcome of the Key Risk Indicators with professional engagement if needed