Risk Index

Risk Index cover 

The Protiviti Risk Index - A Single Number Snapshot of Organizational Risk

 

“By equipping companies with a more comprehensive, comprehensible and actionable snapshot of their organizations’ risk management progress, risk indices can help risk officers, board members and shareholders become more confident that they understand the business’ risk profile – and whether risk levels are rising or falling.”

Protiviti’s conversations with Board members and executives of leading financial firms across the globe have frequently come back to three simple questions:

​1. ​Am I riskier today than I was yesterday?
​2. ​Am I going into a riskier time?
​3. ​What are the underlying causes?

The Protiviti Risk Index is a proprietary, powerful solution to focus attention on highest priority items in an intuitive and straightforward manner. We have built a customizable, highly intuitive software tool to house the methodology within Microsoft Sharepoint, leveraging data visualization software. It is designed to catpure, calculate and evaluate a large volume of complex risk data and reduce it to a single-number snapshot of organizational risk to guide risk management strategies and investments. The Index facilitates the following high value characteristics in risk reporting:

  1. Format: A single number that can be used as a quick risk reference.
  2. Versatility and Scalability: May be tailored to the enterprise, business unit, function, product, or geography.
  3. Real-time: Allows for updates as often as needed providing for ongoing and continuous monitoring.
  4. Strategic: Captures the most important risk drivers that directly impact achievement of strategic and operating objectives.
  5. Leading: Provides early warning signals that allow management to focus resources aimed at preventing/mitigating additional risks from arising within a defined tolerance level.
  6. Credibility: Makes intuitive sense and has buy-in at all levels of the institution.