To most accurately automate the assessment of control effectiveness in your risk assessments, you need a healthy mixture of both subjective and automated measures. LogicManager allows risk managers to capture subjective assessments of control effectiveness from their risk owners, who are the subject matter experts in how well existing controls address their particular risks, but these subjective assessments are balanced by automated reviews and adjustments that account for real-time data collected about your controls.
This real-time adjustment is called the “Assurance Index,” and it’s LogicManager’s adjustment of a risk owner’s subjective assessment that accounts for the tests and metrics performed against a control. The Assurance Index allows risk managers to automate their assurance calculations, while still keeping the end result grounded in real-world scenarios. When a control fails a test or its metric falls out of tolerance, the Assurance Index will intelligently reduce the assessor’s control effectiveness rating for any associated risks. When the control is retested or its performance is improved, the reverse is true and the rating improves.
Risk managers can improve their programs by incorporating automation into their measurement of control effectiveness. The best programs can account for both control data and risk owner input to assess the confidence that risks are appropriately mitigated.