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FAIR Program Metrics

The measures used to track the value and maturity of a FAIR quantitative-risk program, such as how many decisions it informed, the consistency and accuracy of estimates, and the program's coverage and efficiency.

To show that a FAIR program is worth the investment and improving, it needs metrics: how many significant decisions FAIR analysis informed, whether estimates prove well-calibrated over time, how much of the risk landscape is covered quantitatively, and how efficiently analyses are produced. These metrics demonstrate FAIR's business value, guide where to improve the practice, and justify continued investment in quantitative risk.

Introduced in: Risk Quantification with FAIR

Examples

  • Tracking how many investment decisions FAIR analysis informed.
  • Measuring whether past estimates proved well-calibrated.
  • Reporting the share of top risks covered by quantitative analysis.

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