Estimate Financial Risks with These Common Metrics and Indicators

Financial Risks measurement KPI - Balanced Scorecard metrics template example In all spheres of business the ability to fulfill obligations is the prime concern. Having limited access to information, Financial Institutions, like other companies, try to pick up only best partners for the deals.

But yet there is always a risk that the partner would fail to pay. Credit Risk - is the risk that a change in the credit quality of counterparty will affect the value of a bank's position.

The Risk can result from downgrading by a rating agency or default by the counterparty. This BSC provides guidelines to credit risk management using probability concepts and sets of limits for various types of clients.

Download Trial Version of KPIsBuy Full Version of KPIs

Why do business professionals choose ready-to-use KPIs?

Read Why do business professionals choose ready-to-use KPIs? to find out the answers to these questions:

  • Can a business professional research KPIs on his own?
  • How do I avoid typical problems with KPIs?
  • Is ready-to-use KPI applicable in my niche?
  • Is KPIs' price affordable?
  • Can KPIs can be easily integrated in any business environment?
  • How can KPIs make the difference to the business?

How to align these KPIs with a strategy of our organization?

Ideally, you need to have a strategy (in a form of a strategy map) before you start thinking about the ways to measure its execution (KPIs). Don't have a strategy map yet? Use free Strategy Map Wizard to create a strategy map for your current business challenges. The wizard will:

The whole process takes on average 6 minutes. Give it a try right now - it's free.

What are the benefits of /solutions/financial_risks_excel.htm metric:

Get these KPIs

More ideas on using /solutions/financial_risks_excel.htm KPI

Financial risks span any condition that creates a danger for financial standing of a company or individual. The risks can stem from any number of 'internal 'or 'external' sources. Uncertainty in surroundings is one such common problem that is the root cause of all the other 'financial difficulties'.

Commonly recognized types of financial risks are 'Investment risk', 'Business risk', 'credit risk', 'Insurance risk', 'market risk', 'liquidity risk', 'operational risk'. Though the specific characteristics of these kinds differ, a trait associated with each of these is that the 'funds are in serious danger'. Moving on, when it comes to an organizational management, funds are something that cannot be compromised at any level to any degree. Therefore, one is required to carve a useful strategy to keep a constant track of financial operations, rather the inlets and outlets of funds.

Only if application and sources of funds have been wisely selected that it is possible to take the organization ahead and grow it.

To tackle the situation, 'balanced scorecard' is often opted for by financial risk assessors. One can identify the metrics to be put on it and leave the task of monitoring to these.

More useful information for Risk Evaluation

Financial Risks Evaluation Balanced Scorecard Screenshots

The Balanced Scorecard (BSC) dashboard indicates performance within each perspective and the total performance of .

This is the actual scorecard with Financial Risks Performance Indicators and performance indicators.

Metrics for Risk Evaluation

This is the actual scorecard with Financial Risks Performance Indicators and performance indicators. The performance indicators include: business loans metrics, probability of default, loss given default, limit by industry/sector, limit by credit rating, debt default and allowance metrics, marginal mortality rate (mmr) exposure, delta (price risk), gamma (convexity risk), theta (time decay risk).

Download or purchase Financial Risks Evaluation Balanced Scorecard

Download a trial version of Financial Risks Evaluation Balanced Scorecard or purchase a full version online.

Free Example Template(s)

Use this example to create your own KPI scorecard using a cloud-based software.

Best practice articles

All articles about measuring performance in .

10 Step KPI System on Amazon

10 Step KPI System Book

How is this book different from 796 other book titles about KPIs on Amazon?

"Before writing a single line, I formulated some guiding principles, one of them was: "If our clients ask, "How can I find a good KPI for..." - I want this book to provide a perfect answer."

Manage your KPIs, Strategy Maps, and Balanced Scorecards Online

Cloud-based Balanced Scorecard Software

The most shared articles on BSC Designer

Scorecard Templates for PowerPoint

FREE Graphical Balanced Scorecard (BSC) templates for your presentation

The most popular articles on BSC Designer