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)