Case Study: Using the Right Yardstick
Elsewhere in this book we’ve talked about the importance of setting up performance measures and tying incentives to those measures.
Putting performance measures in place is like removing a blindfold. Suddenly you can see what is transpiring in the different areas of the business. You can figure out which products and locations are doing well and which are struggling. You can track down the reasons for this more easily and make better management decisions.
Once risk information becomes a part of those metrics, you can make even more informed decisions. You can better understand mitigation choices, identify origination points for the true value of different business aspects, and see the different products, ...