Int. J. of Data Science   »   2015 Vol.1, No.1

 

 

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Title: Scorecard models for operations management

 

Author: Paolo Giudici

 

Address: Department of Economics and Management, University of Pavia, Via San Felice 5, Pavia 27100, Italy

 

Abstract: In this paper, we propose two effective methods to prioritise controls on operations management on the basis of their operational risk. The methods are based on the combination of a sound statistical methodology and an easy to communicate scorecard reporting format. The first method summarises the content of operational self-assessment questionnaires using the idea of a 'Gini rating', thereby producing a simple read ordering of operations performance. The second method introduces a simple non-parametric Bayesian model, able to integrate questionnaire data with observed loss data, thereby producing a combined measure of risk, on which to base capital coverage.

 

Keywords: Bayesian models; Gini rating; operational risk; scorecard models; integrated scorecard models; operations management; self-assessment questionnaires; modelling; loss data; risk measures; capital coverage; operational risk indicators; risk management.

 

DOI: 10.1504/IJDS.2015.069055

 

Int. J. of Data Science, 2015 Vol.1, No.1, pp.96 - 101

 

Available online: 19 Apr 2015

 

 

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