KPI vs KRI Sep 12 q 6(v)

Discussion in 'SP9' started by Edwin, Sep 1, 2014.

  1. Edwin

    Edwin Member

    Hi,

    First someone please confirm that i am thinking right here;-

    KPI i assumed things like ROA, ROC

    KRI i assumed things like VAR, TVAR etc

    Now the question asks whether a KRI can be used as a KRI for which i said they are different things, relate to diff objectives, however we can "somewhat" combine them by calculating risk-adjusted returns e.g RAROC

    A mark or two?
     
  2. Simon James

    Simon James ActEd Tutor Staff Member

    maybe [1/2] :)

    KPIs are used to monitor the performance of an organisation.
    KRIs consider the risks.

    It is possible for a particular statistic to inform both sides of the equation. One company’s downside (risk) might be another company’s upside (performance) (eg mortality experience).
     

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