How to Monitor and Evaluate a Risk Action Plan
By VLH, specialists in audits and risk management for companies
Once an action plan is implemented to mitigate, correct, or prevent a risk, an equally important phase begins: monitoring and evaluation. A plan that is not executed correctly—or whose impact is not measured—can become a fruitless effort. In this article, we explain how to conduct structured monitoring, which indicators to use, and how to ensure your plan doesn’t just remain on paper.
Why is monitoring an action plan key?
A plan without monitoring is like a GPS without a signal: it plots the route, but doesn’t guarantee you’re heading in the right direction. The monitoring phase allows you to:
– Detect delays or bottlenecks in execution.
– Adjust actions that are not working as expected.
– Evaluate the real impact on the mitigated risk.
– Learn from experience, documenting best practices for the future.
Key Indicators for Evaluating an Action Plan
Measuring execution and effectiveness is fundamental to knowing if actions are yielding results. Some useful KPIs include:
– Percentage of tasks completed vs. planned
– Average execution time per task
– Level of risk mitigation (before vs. after)
– Number of activities rescheduled or modified
– Compliance with deadlines by responsible party
These indicators help detect deviations in time and improve decision-making.
Tools for Monitoring Action Plans
Depending on the size and maturity of your organization, you can use anything from spreadsheets to specialized risk management platforms like Pirani. Some key features of these tools include:
– Clear assignment of responsibilities and deadlines
– Progress visualization (by color or graphs)
– Relationship between action plans, risks, and controls
– Automatic alerts for deadlines
– Automated reports for audits or board meetings
Follow-up Meetings: What Shouldn’t Be Missing?
Regular meetings are crucial for monitoring progress. These should include:
– Review of completed vs. pending tasks
– Identification of obstacles or new challenges
– Necessary adjustments to actions or responsibilities
– Identification of new emerging risks
The participation of all involved areas is key to generating commitment.
What to do if an action plan fails?
Even a well-executed plan may not achieve the expected results. In that case, we recommend:
– Reviewing the original risk analysis: Was it complete and accurate?
– Re-evaluating the plan’s strategy: Were the actions the most appropriate?
– Gathering feedback from those who carried out the tasks.
– Documenting lessons learned for future improvements.
Failure is also a valuable source of information if managed properly.
Conclusion
A good action plan only fulfills its purpose if it is implemented, measured, and improved. At VLH, we support organizations at every stage of the risk management cycle, including monitoring and evaluating their action plans. Our approach ensures sustainable results and evidence-based decisions.
Does your company need risk monitoring advice?
Let’s talk.