I have posted on licensing metrics in this blog several times and wanted to provide an update to the latest thinking related to the relationship between these two methodologies based upon a hypothetical risk assessment scale. This is provided for those licensing researchers and regulatory scientists who are interested in the measurement dynamics of licensing/regulatory data. These concepts are pertinent to regulatory science in general and are not specific to any content area. A graphic display of this relationship is provided in the attached document with a brief explanation of how key indicator rules and risk assessment rules are related.
As I have said in previous blogs and publications, risk assessment rules are to mitigate the relative risk to clients while key indicator rules are predictor rules and predict overall regulatory compliance with all rules. Risk assessment rules are the “Do No Harm” rules while key indicator rules are more like the “Do Good” rules.
The important factor in any differential monitoring system is finding the right balance of risk assessment and key indicator rules. We always want the approach to be cost effective and efficient at the same time. Again effectiveness is more pertinent to the risk assessment rules while efficiency is more pertinent to the key indicator rules. This is easier said than done.