Risk Indicator Pilot Study and Guidance

Report - October 2021

Over 50 financial institutions participated in the Risk Indicator and Culture Pilot Study to support benchmarking of current practices, and to further enhance their use of risk indicators to monitor material risks and/or key controls.

This study included:

•  A summary of key findings from the participants’ views on risk indicators and risk culture monitoring from the survey and regular roundtable discussion groups held to further explore the key challenges and potential solutions of risk indicator and risk culture monitoring
• The sharing of over 360 financial crime risk indicators and 230 risk culture indicators available for participants to benchmark against their own RIs to understand the range of practice and potentially identify areas for enhancement
• Risk indicator guidance for participants explaining key steps in developing RIs, including key challenges and how to overcome them
• The development of a risk indicator maturity matrix, which will allow participants to further benchmark their current practices

The study also was the starting point for our project to create a Reference Risk Indicator Library. The results of the pilot are available to all ORX members, as is the Reference Risk Indicator Library.