Assessment of Strategy execution and KPI performance for financial institutions
The Strategy for development and KPI performance is an internal policy document essential for monitoring the performance of a financial institution over the medium term (3–5 years) and long term (5 years and beyond). It sets out the means and specific action plans to achieve the entity's strategic development goals within the established timeframes, including the volume and sources of funding, as well as the target values for current and expected performance indicators of the entity, its subsidiaries, and branches.
FBK assesses Strategy execution and KPI achievement to inform the entity's management and/or regulatory authorities about the institution's alignment with its stated strategic goals and objectives. Independent experts carry out the assessment, which ensures transparency and objectivity of the results.
As part of the assessment, our experts:
- analyse documentation supporting the entity's performance indicators;
- analyse key performance indicators (KPIs) reflecting the financial institution's financial and operational activities, investment, innovation, and dividend policies, as well as management incentive systems, and assessment of their alignment with the targets set out in the Strategy;
- prepare a report containing conclusions on deviations from the Strategy and recommendations to address them.
Upon its completion, the client receives:
- A report including:
- an assessment of the degree of alignment between current KPIs and the targets set out in the Strategy;
- conclusions by qualified experts on deviations of actual performance indicators from those planned in the Strategy;
- recommendations for adjusting the Strategy to mitigate the risks of further deviations, taking into account industry strategy, the entity's development strategy, and business goals and objectives.
- An evaluation of the entity's operational effectiveness and the achievement of objectives that are subject to qualitative and/or quantitative measurement and are material to long-term and medium-term goals.
- Identification and resolution of risks, accounting errors, and misstatements in financial reporting, contributing to the reduction of legal risks and the prevention of issues with tax authorities and other supervisory bodies.
- Process optimisation and improvement of financial performance through timely detection of errors and provision of recommendations for their remediation.
- More trust from potential investors, partners, and clients through the provision of reliable information.
- Improved credit rating.
- Increased customer satisfaction index for the financial institution's services.
The assessment of Strategy execution and KPI performance for a financial institution is a step towards building a foundation for sustainable and productive growth and development
