How can you use dashboards and scorecards to report risk?

2 How do dashboards and scorecards differ?

Dashboards and scorecards are often used interchangeably, but they have some distinct features and functions. Dashboards are designed to provide a quick and easy overview of the most important risk indicators, such as risk exposure, risk appetite, risk events, or risk responses. Dashboards usually use graphical elements, such as charts, gauges, or traffic lights, to highlight the status and changes of risk indicators. Dashboards are useful for monitoring and controlling risk on a regular basis, and for alerting stakeholders to any issues or deviations that require attention or action.

Scorecards, on the other hand, are more focused on measuring and evaluating the results and outcomes of risk management. Scorecards use numerical or qualitative data, such as scores, ratings, or benchmarks, to compare the actual performance of risk management against predefined targets or standards. Scorecards are useful for assessing and reporting the effectiveness and efficiency of risk management, and for demonstrating the value and impact of risk management on the organization's performance and objectives.

3 How can you design dashboards and scorecards for risk reporting?

Designing effective dashboards and scorecards for risk reporting requires following some best practices and principles. Firstly, you need to define your purpose and audience, being sure to consider the main questions or issues you want to address and the expectations of the intended users. Additionally, you must select the most relevant and reliable data and metrics that are aligned with your risk management framework, strategy, and objectives. Once you have chosen the data and metrics, you must then select the most appropriate format and layout for your dashboards and scorecards. Finally, before sharing them, you should test and refine your dashboards and scorecards to make sure they are accurate, complete, up to date, relevant, useful, and meaningful for your audience. Solicit feedback from your stakeholders and users as needed.

4 How can you use dashboards and scorecards for risk reporting?

Once you have designed your dashboards and scorecards for risk reporting, you can use them for various purposes and benefits. For example, they can be used to inform and educate stakeholders about the status and performance of risk management activities. Dashboards and scorecards can also be used to communicate and engage with stakeholders about expectations and responsibilities. Moreover, they can demonstrate compliance and alignment with risk management standards and objectives. Ultimately, dashboards and scorecards provide a snapshot or summary of risk management activities, highlight key achievements, challenges, or lessons learned, clarify roles and accountabilities of different stakeholders, foster dialogue and collaboration on risk management activities, show compliance with internal/external requirements, and support/contribute to strategic/operational objectives.