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KPIs are only as good as the data used to create them -- garbage in, garbage out. The best KPIs offer hints as to the levers the company can pull to improve them.
Companies that use KPIs as a risk-assessment tool and a measurement of success will be in a better position to meet increasing regulatory expectations. KPIs can not only be an ally in detecting deviations in controls, but also in identifying fraud or risk areas on a proactive basis. With KPIs in place, the success of continuous improvements can also be measured.
Hence, it is fundamental for compliance to establish and measure KPIs to quickly act on potential risks and eliminate root causes. Establishing a plan and appropriate measurements of improvement will, at first, be a large undertaking. However, the cost of non-compliance is almost always higher than the alternatives.
The goal of the KPI in safety and risk is to help managers and employees track process improvements related to safety.
ME CFO can help your company to:
- Define business strategy and objectives
- Establish key performance indicators (KPIs) to measure results
- Identify risks that can drive variability in performance
- Establish key risk indicators (KRIs) and tolerance levels for critical risks
- Provide integrated reporting and monitoring
Strategic risk represents the greatest dangers—and opportunities—your company faces. By taking steps to manage it at the enterprise level, companies can shape their future success while minimizing downside exposure.
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