Linking Risks to Performance Management
SMART Monitoring of Risk
The number of business measures within organizations is typically growing. Measures are often added on a reaction basis to loss events that have already occurred. Wouldn’t it be valuable to be able to focus on forward looking measures? In most organizations, these preventative, proactive measures are indistinguishable when grouped with reactive measures, because the metrics do not formally tie back to any commitments or risks.
Organizations with LogicManager link their risks to their business metrics. As a result, when a risk or activity changes, they know if and how these changes will affect their metrics. Through regular quarterly, or even annual, risk assessments, organizations can detect increased threat levels and identify new emerging risks before they materialize and bring your business metrics out of tolerance. 
LogicManager links robust testing, incident management, issues, and business metrics collection to risks. That’s what we call SMART monitoring
- Specific: linked to risks within business processes
- Manageable: roll–up from process to enterprise level
- Actionable: prioritize to align resources
- Relevant: connected to strategic imperatives
- Trending over time: show goal with tolerance vs actual
- Testing – verify effectiveness and efficiency of a control over risk.
- Metrics – measure what matters and link to performance management.
- Incident Management – respond to events and prevent incidents.
- Issues – determine a frequency that matches the volatility of the activity.