Fiene Algorithm for Generating Regulatory Compliance Key Indicators (RCKI)

Here is the most recent simplified version of the Fiene Algorithm for Generating Regulatory Compliance Key Indicators (RCKI)

1. Add up regulatory non-compliances for all programs, agencies, jurisdictions, etc…
2. Review Regulatory Compliance history sorted from high to low
3. Nominal (Compliance(1)/Non-Compliance(0)) or ordinal measurement (Gradient(1-5)) scaling
4. Take Risk Assessment Weighting (1-9) into account and apply to nominal or ordinal scaling.
5. Top 25% (High Group) and bottom 25% (Low Group) of regulatory compliance scores
6. Drop out the middle 50% of regulatory compliance scores
7. Develop a 2 x 2 matrix which includes each regulation by the High Group and Low Group
8. Cells of the Matrix:  A = High Group + Programs in Compliance on Specific Regulation
9. B = High Group + Programs out of Compliance on Specific Regulation
10. C = Low Group + Programs in Compliance on Specific Regulation
11. D = Low Group + Programs out of Compliance on Specific Regulation
12. W = Total Number of Programs in Compliance on Specific Regulation
13. X = Total Number of Programs out of Compliance on Specific Regulation
14. Y = Total Number of Programs in High Group.
15. Z = Total Number of Programs in Low Group
16. Use the following formula: ((A)(D)) – ((B)(C)) / sqrt ((W)(X)(Y)(Z)) = RCKI
17. Result will range from –1 to +1
18. +.5 to +1.0 will be included as Regulatory Compliance Key Indicators (RCKI).  All other regulations will not be included.