Training center

Course: Bank KPI (4 hrs seminar)

Laying down Key Performance Indicators for a bank gives business units a better focus on their tasks, promoting strategic division of labor, responsibility and motivation. Banks’ KPI define their strategies, risk acceptance, market position and ultimately the state of the financial system. Establishing KPI is a difficult but rewarding process and requires an ability to reconcile contradictory demands.

Main program topics

• Creation of a sound bank structure and business units with particular tasks.
• Cascading indicators down to specific units.
• Risk control on every decision-making level and capital distribution.
• How to integrate of different indicators for the same line of activity.
• Accounting for indicators that cannot be cascaded down to units, e.g. liquidity or interest risk.

Business-oriented risk management is particularly important for banks. The following technologies will be considered at the seminar:

• creation and observance of a Risk appetite declaration;
• capital distribution;
• risk-adjusted pricing;
• profit calculation using risk-adjusted return on capital (RAROC) and economic value-added (EVA).