Who is this article for?

Users who need to understand Weightings.

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Pentana has a standard Planning Risk scoring system that incorporates weightings, which can be assigned to entities, processes, and Planning Risks to calculate weighted average scores.

1. Assigning weightings to different areas

Weightings can be assigned to three different areas:

• Entities
• Processes
• Planning Risks

For example, an entity such as London Head Office might have a weighting of 1.00:

A process such as Governance might have a weighting of 3.00:

Planning Risks can have different weightings assigned:

• Risk 1 weighting = 2.0
• Risk 2 weighting = 1.0
• Risk 3 weighting = 2.0

2. Understanding Entity Process Risk Assessment scoring

Each risk in an Entity Process Risk Assessment has a rating and corresponding score:

• Risk 1: Rating = High, Score = 75
• Risk 2: Rating = Medium, Score = 50
• Risk 3: Rating = Low, Score = 25

The Entity/Process Risk Assessment Score is calculated as 55.00 using the weighting system.

3. Calculating the Entity Process Risk Assessment Score

The score calculation follows these steps:

1. Calculate each Risk Score by multiplying the Assessment Score by the Risk Weighting:
   • Risk 1 Score: 75 × 2 = 150
   • Risk 2 Score: 50 × 2 = 100
   • Risk 3 Score: 25 × 1 = 25
2. Calculate the Entity Process Risk Assessment Score by dividing the Total Risk Scores by the Total Weighting.
3. Add all Risk Scores together: 150 + 100 + 25 = 275.
4. Add all Risk Weightings together: 2 + 2 + 1 = 5.
5. Divide the Total Risk Score by the Total Weighting: 275 ÷ 5 = 55.

Note: The Total Risk Score (of 275) is divided by the Total Weighting (of 5) rather than by the number of Risks (which is 3) so that the final Weighted Average is certain to remain within the range of the individual scores which went into it (between 0 and 100). The Weighted Average is therefore biased towards the Risks with the largest Weight in such a way that the final Score can always be converted back to a Rating.

Tip: If you want Risks with large Weightings to make the Total Risk Score very large, set the relevant System Setting to Sum or Max rather than Average.

4. Using Entity and Process weights for rolling up scores

The Entity and Process weights are not used for scoring on the Planning Risk Assessment Screen. The calculation takes place when rolling up two or more cells together on the Entity/Process matrix on the Planning Risk Exposure screen and the Audit Scheduling screen.

The weighted average calculation works as follows:

1. Take two example cells:
   • Entity 1 Process 1 Score = 55, Entity 1 Weight = 1, Process 1 Weight = 3
   • Entity 2 Process 2 Score = 65, Entity 2 Weight = 2, Process 2 Weight = 2
2. Apply the formula: (Entity/Process 1 Score × Entity 1 Weight × Process 1 Weight) + (Entity/Process 2 Score × Entity 2 Weight × Process 2 Weight) ÷ (Entity 1 Weight × Process 1 Weight) + (Entity 2 Weight × Process 2 Weight).
3. Calculate: (55 × 1 × 3) + (65 × 2 × 2) ÷ (1 × 3) + (2 × 2) = 60.7.

Note: As with the Total Risk Score for each cell described above, the Weighted Average for the rolled up cells is calculated by dividing the Total Risk Score (of 425) by the Total Weighting (of 7) rather than by the number of cells (which is 2) so that even if the Hierarchy Matrix is collapsed right back to the root node the grand Total Score is still in the same range.