What's this About?
CCRO members this year are looking forward to developing our understanding of operative risks by creating an entirely new information source for industry related benchmarking statistics. Key Risk Indicators (KRIs) are an important part of this initiative. A keen awareness of KRIs can help energy companies with management of their operative risks that can be so elusive to address.
Understanding Operative Risks
The CCRO has published recommended practices for operative risk, dividing the area of study into two distinct components for energy firms: "Operational risks" and "Operations risks", illustrated here...
Our KRI group is interested in developing leading practices related to measuring, reporting, and managing risks in both of these operative areas.
Recommended Practices for Key Risk Indicators
KRIs are designed to provide leading-indicators of potential problems. They can be invaluable to risk professionals, by enabling insightful and actionable risk dashboards & reports. However, the specifics about KRIs are often unclear, they certainly are not standardized, and virtually no industry data is available on them. These unfortunate truths have prompted a lot of attention among CCRO members.
Benchmarking: “Where do I stand?”
Our continuing dialog about KRIs has led members to focus on a set of readily standardized KRIs that also are good candidates for industry benchmarking. CCRO member companies from US and Europe have expressed keen interest in this subject. In fact, the Trade Area KRI Database is fast becoming a premier topic for CCRO discussions.
Recently, members volunteered to contribute their internal KRI data to the CCRO, where it is aggregated, and group statistics can subsequently be developed. We are planning member webinars for discussions about the draft KRI statistics, the KRI formulae, and an expanded menu of KRIs for this benchmarking initiative. The group has started with two simple KRIs: “late entries” and “edited trades”. The group now wants to expand their KRI list and to widen the data set. Ultimately, this database of KRIs will allow CCRO members to benchmark their own KRIs against this anonymous industry peer group. We are already seeing the results are powerful insights.
Join the CCRO: Become part of the KRI Group today
Gain access to the many benefits of CCRO involvement today. All companies that contribute KRI data are part of our draft results discussions. In recent months these discussions have proven to be very engaging and are steering our plans for expansion of the KRI metric set. Plus, once the anonymous data is published, participants will have on-going access to peer group KRI benchmarks.
Current Working Group Leaders
These are the initial leaders of this growing group of participant companies. As the KRI database grows in the months ahead and the group is more formally addressing the KRI list and its details, the leadership team will certainly grow...