Defining a Performance Standard

Performance standards define a system performance requirement, equipment, or procedure, in the form of a set of specific questions to be answered at the time of verification, on a scheduled or ad-hoc basis, to enable consistent verification reporting and oversight. Think of a performance standard as a mini-audit or inspection for your base controls, or a list of expectations defining how a control should function; this is how you set criteria for the best possible performance of your base controls. Performance standards are “global” items and are available for use in all Operational Risk locations.

A performance standard includes:

• • Performance Elements – those aspects of the control that can be checked or monitored to determine the effectiveness of the control
  • Performance Criteria – the values that indicate acceptable performance (the questions established for the performance standard)

Create a Performance Standard

• 1. Select Control Verifications > Performance Standards > Add.
     
  2. Enter the Primary Details: select a Name, Type (defined in Administration > Global Setup > Performance Standard Types), and an optional Scope, Goal, Owner, Comments, and Date.
  3. Select View Scoring Options to require additional actions be taken by the verifier when verification activity scores result in certain values. Enter specific threshold scores for the following:
     
     • • • Mandate explanation of Immediate Action(s) Undertaken when Score is below the threshold. The Immediate Action field will be required in this case.
         • Request explanation of Immediate Action(s) Undertaken when Score is below the threshold.
         • Mandate addition of Action(s) when Score is below the threshold. The Action field will be required in this case.
         • Request addition of Action(s) when Score is below the threshold

     

     A possible score is an automatically calculated sum of possible scores from the list of Performance Criteria.

  4. Save the new Performance Standard.

Add Performance Elements

1. 1. From the Performance Standards page, select a Performance Standard to open it.
   2. Select Insert New Performance Element.
      
   3. In the new row created, double-click the first cell (or right-click > Edit Cell) and add the PE Name > Save.
      
   4. Right-click the cell > Edit Element:
      
      • You can add Primary Details for the Performance Element, including Name, Location Types/Tags, and any Comments. Possible Score is an automatically calculated sum of possible scores from the list of Performance Criteria.
      • Once Performance Criteria have been entered for this Performance Element, they are listed under the Criteria
      • You can add attachments (documents, images, etc.) and References under the Attachments
        
   5. Select Save to save the details.
   6. To add additional Performance Elements, right-click the row and select Insert New Above or Insert New Below. Each new row will have its own subset of criteria.

Add Performance Criteria

1. After creating the first Performance Element, you can add Performance Criteria: select Insert New Item. 
   
   
2. Right-click the row and select Edit Criterion to add details. The Performance Criteria (PC) are the specific questions or checklist items that the person completing the verification activity will answer.
   
   • The PC Context (defined in Administration > Editor > Lookups) determines the type of output of the verification template (the template allows filtering when generating the verification based on the Criteria Context and other parameters).
   • The PC Result Category (defined in Administration > Editor > Lookups) determines the options the auditor will have—essentially how verification can be measured—when responding to the verification questions.
   • Weighting (0 to 100) dictates how the system will perform the calculation and map the audit score results based on the configuration.
     
3. Select Save to save changes.
4. To add additional Performance Criteria, right-click the row and select Insert New Above or Insert New Below. Rows can also be deleted at any time.