Management Six Sigma

Risk Management Balanced Scorecard Metrics Pack

The Risks scorecard pack contains three risk metrics - Market Risks,

Financial Risks, and Operational Risks. All these metrics are focused on

risk estimation and management problem. The scorecards allow to find out

what current risk ratio is and how to decrease it.

The Operational Risk scorecard treat risk as a low-level business

operational risks. The Market Risk scorecard gives high-level risk

indicators applicable to business units or company.

The "Financial Risks" is a separate scorecard which focuses exclusively on

risk related to finances, providing such indicators are "probability of

default", "loss given default", "limit by industry/sector", "limit by

credit rating".

The pack includes 3 Risk Management metrics:

. Market Risk. This BSC examines market risk as one of the components of

risk management employed by large financial institutions. It helps to

identify and measure risk exposure associated with change in market

conditions, including: interest rate, foreign exchange, liquidity, off-

balance sheet, and trading risk metrics.

. Financial Risks. Credit risk is defined as the risk of financial loss

due to counterparty failing to meet its obligations in accordance with

agreed terms .This BSC is a tool that can bring together theoretical

framework of the credit risk management and practical knowledge of the

industry and partners.

. Operational Risk. Operational failure risk arises from the potential

for failure in the course of operating any type of business. This BSC

examines potential failures associated with people, processes,

technology within the business unit and also incorporates external

factors into the analysis

Six Sigma metrics:

Effectively managing Six Sigma as a continuous improvement initiative will

produce a waterfall effect on metrics by not only identifying new ways to

consider and measure what important to the business, but also creating

better data the current business metrics are based on. With leadership

leveraging better business data, a more informed strategy can be put in

place that better addresses client needs and how the company can more

effectively address them. However, consolidating Six Sigma metrics with

business metrics is usually a challenge for the company management.

Ideally, Six Sigma metrics should be fully incorporated in the rest of the

business metrics.

Crisis Management Balanced Scorecard Metrics Pack

The pack includes 5 Crisis Management metrics:

. Mergers and Acquisitions. KPIs are the quantitative measures of

expressing the parameters used to evaluate and manage the crisis that

can emerge in the process of mergers and acquisitions. These can be

formed in various dimensions. Some of them can be Financial

Perspective, Human Resources Issues, Operations and Partner

Compatibility. This would help in having a bird-s eye view of the

whole process of merger or an acquisition thereby enabling the

spotting of problematic areas and improving them.

. Data Loss. KPIs, the quantitative and measurable parameters can help

in handling the situations that result in case of data loss. These are

used to evaluate the data loss issues, human initiatives, technology

initiatives and data and system management initiatives that were taken

to prevent such conditions from occurring. The magnitudes obtained can

be improved on to better meet the goals set.

. Crisis Management Companies. KPIs can help in defining specific and

measurable parameters that are result-oriented and can help crisis

management companies to handle critical situations in a better way.

These companies basically consider four main parameters, namely,

Financial, Customer, Education and growth and Internal processes.

Together these indicators can prevent a company from falling off the

track and keeping its performance up to the mark.

. Government Crisis Management. KPIs are the financial and non-financial

parameters which are specific and measurable and can make crisis

management effective in government agencies. Four major indicators in

this regard are financial, information and knowledge management, team

management, and operational efficiency. These indicators can help in

analyzing the crisis situations from different viewpoints and thus,

help in resolving such situations.

. Natural Disaster Management. Performance Measurement in the area of

natural disaster Management deals with detection of dangerous

situations as soon as possible. Various issues can be effectively

monitored in the form of KPIs. For effective natural disaster

management these KPIs can be arranged under these major perspectives-

Disaster Monitoring and Funding, Disaster Risk Reduction, Disaster

Preparedness and Education and Training Perspective. A close

evaluation of all these parameters culminates in the form of better

performances of the whole program.

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