This technical research note will integrate the Key Indicator Matrix (KIM) and the Risk Assessment Matrix (RAM) into one platform to clearly demonstrate their statistical modeling overlap. Key Indicators deal with the ability to predict overall compliance or performance based on existing data. Risk Assessment Indicators do not predict but determine a risk score based upon prevalence and severity measures. Their purposes are different but when integrated together the two matrices are a powerful tool in determining the health of the measured entity.
The below matrix integrates the two matrices of KIM and RAM and shows that KIM scores are generally at the lower end of risk but having sufficient prevalence when it comes to non-compliance. RAM scores have a larger variance and are most concerning at the higher end of the continuum.
KIM x RAM Matrices
|KIM||Low Group||High Group||Severity:|