Calculating KRIs
From this article, you will find out more about:
Calculating a KRI trend
Calculating a KRI rating
Calculating KRI Trend
In principle, the calculation of the Trend is a comparison between:
The difference between the current value and the Target value, and
The difference between the new value and the Target value.
The table below shows the possible Trends and the conditions under which a particular Trend is generally set by Drova GRC.
Note: Treat these conditions as a guide only. The algorithm used by Drova GRC to determine Trend is more complex and may result in Drova GRC applying a different Trend when analysing some KRI Indicator settings.Trend | Conditions for setting Trend |
Improving | The difference between the new value and the Target value is less than the difference between the current value and the Target value. |
Static | The difference between the new value and the Target value is the same as the difference between the current value and the Target value. |
Worsening | The difference between the new value and the Target value is greater than the difference between the current value and the Target value. |
Remember: You can override the displayed Trend and/or Rating for a KRI if you are sure that the ones determined by Drova GRC do not accurately reflect the KRI value changes for a particular KRI Measurement.Calculating KRI Rating
Drova GRC determines a KRI’s Rating by:
Comparing the value of the KRI against the value bands in the Indicator settings, and
Setting the Rating to reflect the applicable value band (see the tables below).
Rating | Conditions for setting Rating |
Acceptable | The new value is between the Target value and the ‘Warning Start’ value. |
Warning | The new value is between the ‘Warning Start’ value and the ‘Warning End’ value. |
Unacceptable | The new value is higher than the ‘Warning End’ value or the ‘Threshold’ value. |
Rating | Conditions for setting Rating |
Acceptable | The new value is between the Target value and the ‘Warning Start’ value. |
Warning | The new value is between the ‘Warning Start’ value and the ‘Warning End’ value. |
Unacceptable | The new value is lower than the ‘Warning End’ value or the ‘Threshold’ value. |
Rating | Conditions for setting Rating |
Acceptable | The new value is between the ‘Warning Top’ and ‘Warning Lower’ values. |
Warning | The new value is between either: the ‘Warning Top’ and the ‘Upper Limit’ values; or the ‘Warning Lower’ and ‘Lower Limit’ values. |
Unacceptable | The new value is either: equal to or greater than the ‘Upper Limit’ value; or equal to or less than the ‘Lower Limit’ value. |
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