Question

How can the Board be confident in the information reported on management’s progress in responding to significant risks

Answer 1

When we consider the performance of the management, we can say that we can verify their reported progress by following a number of different metrics in order to comprehend the values:

1. PRODUCTIVITY

The aspect of productivity is the clearest indicator when we consider how a company functions. We can measure the productivity in the terms of schedules, output, input as well as the work of individuals and teams.

2. ROI

While the ROI is based on a number of different factors, it is also an indicator of the ability of the management to function as well.

3. EMPLOYEE SATISFACTION

Employee satisfaction can be a relevant value in order to measure the success of management especially in how they handle critical situation in order to make the best possible execution process possible for them.

4. GROSS PROFIT MARGIN

GPM can be used to directly tie the success or failure of the management to perform under critic situations and therefore, we can use the data present to us’

The performance of the management needs to be measured in order to make sure the reported data was accurate, the best possible framework to go about this would be to follow specific, measurable and relevant time-based goals and metrics in order to create a better understanding of the reports and measure its accuracy.