Effectiveness | Comparability | Ease of use |
Indicators should | Indicators should | Indicators should |
- Apply to at least one specific risk and one business function or activity | - Be quantified as an amount, a percentage, or a ratio | - Be available reliably on a timely basis; |
- Be measurable at specific point in time | - Be a reasonably precise and definite quantity | - Be cost-effective to collect; and |
- Reflect objective measurement rather than subjective judgment | - Have values that are comparable over time | - Be readily understood and communicated |
- Track at least one aspect of the loss profile or event history, such as frequency, average severity, cumulative loss or near-miss rates; and | - Be comparable internally across businesses | |
- Be reported with primary values and be meaningful without interpretation to some more subjective measure | ||
- Provide useful management information | - Be auditable; and | |
- Be identified as comparable across organizations (if in fact they are) |