Operational Risk Management – III: Dashboards

This series of short articles about risk management aims to provide high level insights about risk reduction. This item adds an update on the use, relevance underlying power of Dashboards.

 

From the incident report, for monitoring problems, we can use dashboards to great effect to convey messages simply. Summary statistics are usually enough to provide relevant view of the situation.

 

Reporting items with an evolution over time and comparison to targets and similar activities may include such things as:

 

number of events,

sum of losses,

max, min,

average amount of losses.

 

A views of losses and their cause, with comparison with either similar or related activities, is also easier to understand when shown in graph, chart or bar. But without a stable publishing format like a dashboard to relate things together, key issues may still be overlooked.

 

The power of the dashboard is also in the designing. In the first place it requires full co-operation and ownership of operational teams to understand the related business process they manage. And then define the risks in measured  terms. The dashboard is an effective way to assemble and focus this key risk information for consistent awareness communication and active responsiveness throughout the organization.

 

Using a Dashboard, Managers can not only easily identify risk but have a greater likelihood of reacting to its impact.  

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