KRI Assessment Calculator

Ann Rodriguez and Viney Chadha

In this chapter, we will describe how to build a simple tool to calculate the strength of a key risk indicator.

BUILDING THE CALCULATOR

A process to assess the strength of a specific KRI and gauge the effectiveness of the entire population supports the maintenance and improvement of a KRI programme over time. The score resulting from the calculator is stored within the KRI metadata as a measure of the strength of the KRI. What makes a KRI strong is subjective, however, and a strong score is typically levied to KRIs that are measuring something key and are predictive indicators for risk. The distribution of the scored population of KRIs is something to consider during the governance process.

The calculator can be a simple expression of some of the attributes of a KRI associated with a weighted average, indicating priority for your organisation and a collaborative scoring approach facilitated by the KRI programme leader. This is an extremely simple tool, but it provides a consistent and documented way to evaluate individual KRIs and the KRI programme as a whole.

USING MS EXCEL

A basic KRI assessment tool can be implemented in MS Excel. The first step is to consider the