The Risk Assessment Matrix and Key Indicator Matrix

This post depicts the relationship of the risk assessment matrix (RAM) and the Key Indicator Matrix (KIM) with one embedded within the other. It clearly demonstrates how the two matrices are related by risk aversion and the mitigation of such risk for clients. This matrix builds off a previous post regarding the RAM and KIM matrices but that post dealt with more of the statistical aspects of the methodologies.

RAM + KIMProbability
Low12 (KIM Low)3
High78 (KIM High)9
Risk Assessment Matrix (RAM) + Key Indicator Matrix (KIM)

The above matrices demonstrate how RAM deals with risk and probability of rule non-compliance while KIM deals with the distinction between medium rule non-compliance with a low compliant and a high compliant group in a more predictive fashion. The key element here is for risk aversion and to reduce risk as much as possible. Please refer back to the previous post which depicts how RAM and KIM which measure effectiveness and efficiency respectively in a differential monitoring approach as suggested through the Regulatory Compliance Theory of Diminishing Returns (TRC+). This is a delicate balancing act in determining the most effective and efficient approach utilizing the two methodologies. The purpose of the above table is to show the relationship between the two methodologies.

About Dr Fiene

Dr. Rick Fiene has spent his professional career in improving the quality of child care in various states, nationally, and internationally. He has done extensive research and publishing on the key components in improving child care quality through an early childhood program quality indicator model of training, technical assistance, quality rating & improvement systems, professional development, mentoring, licensing, risk assessment, differential program monitoring, and accreditation. Dr. Fiene is a retired professor of human development & psychology (Penn State University) where he was department head and director of the Capital Area Early Childhood Research and Training Institute.
This entry was posted in Differential Monitoring, Key Indicators, RIKInstitute, Risk Assessment. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s