RMA and RiskBusiness Announce Global KRI Framework Study

London (October 27, 2003) — RMA - The Risk Management Association and RiskBusiness International Limited announced the expansion of a global key risk indicator (KRI) study at the RMA’s Global Operational Risk Forum 2003 in Paris, France.

The KRI Framework Study is in three parts. Part I, a proof of concept and validation is complete. Seven banks participated: Citigroup Europe, Deutsche Bank, Dresdner Kleinwort Wasserstein, JP MorganChase, KeyCorp, Royal Bank of Canada and State Street. A key deliverable from Part I was an industry risk map that identified the high operational risk points in a typical bank.

Part II, which will create a KRI reference library, has been opened to a wider group of regional and international banks. Each bank that joins the Study will help refine the industry risk map and participate in the identification, definition and specification of KRIs for the agreed high risk points.

Charles Taylor, director of operational risk at RMA, said, "Until now, it has been difficult to show how well KRIs work in tracking important risks and it has been very difficult to compare, aggregate and report on KRIs across institutions. This Study will identify new KRIs, foster standardization and
comparability, and boost effective KRI use in the participating financial institutions." Jonathan Davies, Managing Director, Americas, at RiskBusiness, said, "We plan to release KRI definitions for high risk points starting in the spring of 2004, with detailed specifications following in the summer.

Participants will be able to use this library online for benchmarking their own
definitions and specifications for KRIs across their institutions. Once participants have had time to standardize KRI measurement sufficiently, Part III can begin the benchmarking of values for selected KRIs."

Press Release Contact:
Mike Finlay
Managing Director
International Telephone : +44 7721 969 224
US Telephone : +1 917 214 1086

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