An Objective Method to Measure the Effectiveness of a Risk Management System

Improving a risk management system can be difficult because there is no easy, objective way to calculate the effectiveness of the overall system. This problem is especially difficult for organizations that are at the highest level in the CMMI process model, as it requires continuous process improvement. Continuous improvement of the risk management process area is difficult when one does not know how well the process is working. This paper proposes a new set of measures derived using simple statistics that can be used to objectively calculate how well a risk management system is working. These new measures can be used in continuous process improvement efforts.