Thresholds
Each indicator has three threshold bands — Green, Amber and Red. Thresholds are versioned, so every observation stays read against the bands that applied on its own date, and history does not move when the bands change.
Who may do it: the Entity Risk Manager of the entity that owns the indicator. See Roles and permissions.
The three bands
Section titled “The three bands”| Band | Meaning |
|---|---|
| Green | Within appetite |
| Amber | Approaching the limit — an early warning |
| Red | Outside appetite — a breach |
The boundaries between the bands are set per indicator, in the indicator’s unit.
Calibrating the thresholds
Section titled “Calibrating the thresholds”- Open the indicator in the KRI library.
- Choose to calibrate its thresholds.
- Enter the new band boundaries and the date from which they apply.
- Save. The system creates a new threshold version; the earlier version stays in the indicator’s history with its dates.
What the system does or refuses
Section titled “What the system does or refuses”- Bands are versioned. A calibration never rewrites an earlier version, and each observation is placed in a band by the version in force on the observation’s date.
- Calibration is the Entity Risk Manager’s act for their own entity. A parent cannot calibrate a subsidiary’s thresholds — see Subsidiary-Independence.
- The band of an observation is computed from these thresholds and never chosen — see Computed, never typed.
- Who calibrated, and when, is stamped — see Who-filed is stamped.