KEY INDICATORS FOR EVALUATING THE EFFECTIVENESS OF RISK MANAGEMENT AND THEIR PRACTICAL APPLICATION
Keywords:
Risk management, effectiveness evaluation, key risk indicators, qualitative assessment, ISO 31000, COSO ERM, risk governance, performance metricsAbstract
This study explores the core indicators used to evaluate the effectiveness of risk management systems in organizations, focusing on both quantitative and qualitative metrics. As global business environments grow increasingly complex and uncertain, measuring risk management performance becomes essential for strategic resilience and governance. The research employs a mixed-method approach, reviewing academic frameworks such as ISO 31000 and COSO ERM, and analyzing real-world applications across sectors. The findings demonstrate that integrated use of Key Risk Indicators (KRIs), qualitative assessments, and visual tools like heat maps enables proactive risk governance. Practical case applications highlight how indicator-based monitoring enhances decision-making, compliance, and organizational adaptability in dynamic environments.
References
1. ISO. (2018). ISO 31000: Risk Management – Guidelines. Geneva: International Organization for Standardization.
2. COSO. (2017). Enterprise Risk Management – Integrating with Strategy and Performance. Committee of Sponsoring Organizations.
3. Beasley, M., Branson, B., & Hancock, B. (2020). The State of Risk Oversight: An Overview of Enterprise Risk Management Practices.
4. Lam, J. (2014). Enterprise Risk Management: From Incentives to Controls. Wiley.
5. Hopkin, P. (2018). Fundamentals of Risk Management. Kogan Page.
