During the presentation, Guido van Drunen, will lead participants through the need for benchmarks. You will learn to identify the risks that are inherent in benchmarks, their design, their use as a measurement and performance management tool, the gaming of benchmarks, and the monitoring of those benchmarks. This will be contrasted against the backdrop of potential aberrant behavior and touch briefly on the cause-and-effect relationship between benchmarks and the three sides of the Fraud Triangle. The presentation will touch on real-life examples where poorly designed benchmarks did result in aberrant outcomes. It will also suggest how to better develop and monitor benchmarks.
LEARNING OBJECTIVES: By the end of today’s sessions, attendees will be able to answer the following questions – How to:
1. identify both what a benchmark is trying to achieve and what risks exist in a benchmark that might drive aberrant behavior
2. determine what steps to take to ensure benchmarks are properly developed
3. enable the consideration of the monitoring of benchmarks, ensuring that the actual benchmark objective(s) is/are being met and identifying if there are unintended consequences
4. apply lessons learned from real-life examples to scenarios at your organization as part of continuous improvement and risk management
CPE eligible. (1 credit)