CHAPTER 68
MEASURING THE EFFECTIVENESS AND PERFORMANCE OF YOUR GOVERNANCE, OPERATIONAL RISK, AND COMPLIANCE PROGRAMS
68.1 TAKING A STEP BACK
68.2 PROGRAM EFFECTIVENESS
(a) Mandated Boundaries
(b) Voluntary Boundaries
(c) Conducting the Effectiveness Evaluation
68.3 BEYOND EFFECTIVENESS
68.4 TOTAL PROGRAM PERFORMANCE
68.5 PERFORMANCE MEASUREMENT BENEFITS
68.6 MEASUREMENT PRESENTS CHALLENGES
(a) Unintended Consequences
(b) Perception versus Fact
(c) Long-Term Results
(d) Prevention and Deterrence
(e) Multiple Contributors
(f) Inconsistent or Incompatible Information
68.7 MEASURING PROGRAM PERFORMANCE
(a) Business Objectives: Start with the End in Mind
(b) Identify and Align Program Outcomes/Objectives
(c) Define Indicators and Targets
(d) Measure Indicators
(i) Quality Data—How Imperative Is It?
(ii) Repeatable Approaches
(iii) Consistent Aggregation/Calculation
(e) Analyze Indicators
(f) Improve and Control Program Processes
(i) Effectiveness
(ii) Efficiency
(iii) Responsiveness
(g) Putting It All Together
(h) Candidate Indicators
NOTES
Managing operational risk in the current era of enforcement, shareholder suits, and explosive class action activity poses huge risks if you fail—and presents game-changing opportunities if you choose to embrace it.1 Over the past few years, organizations have focused a lot of time, energy, and resources on designing, implementing, and improving governance, operational risk, and compliance (GRC) programs to ...
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