Gartner Research

Improve Business Decision Making With Risk-Adjusted Value Management: Creating Risk-Adjusted Key Performance Indicators

Published: 01 September 2011

ID: G00214760

Analyst(s): Michael Smith , Paul Proctor

Summary

Executive dashboards are often filled with lagging indicators (typically accounting metrics) that do not effectively support decisions made by the audience to which they are delivered. Risk-adjusted key performance indicators can influence business decision making and board-level reporting.

Table Of Contents
  • Overview

Analysis

  • The Problem With Executive Dashboards
  • Addressing the Strategy Gap and the Failures of Risk Management
  • A Simple Risk-Adjusted Key Performance Indicator
  • The Adjustment Factor
  • A Simple Example
  • Using the Gartner KPI and KRI Catalogs
  • Advanced Metrics
  • Tips for Creating an Executive Dashboard

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