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


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


  • 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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