Add event-based review triggers alongside annual review: Which trigger design is strongest?
Annual review should be supplemented by triggers for material supplier and population changes affecting validation assumptions.
The question
A retailer reviews its demand-planning policy annually. A supplier changes the forecasting model midyear, and sales data now includes a new region absent from validation. The policy must remain usable between annual reviews and assign review resources efficiently. Which trigger design is strongest?
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- Review only after forecast accuracy declines materially.Waiting for observed degradation overlooks changed data populations and supplier changes that can create risk before accuracy visibly declines.
- Require monthly policy reviews for every forecasting system.Monthly universal reviews consume resources without targeting the specified changes, and frequency alone does not define meaningful trigger evidence.
- Keep the annual review and document exceptions.Annual review alone may delay reassessment after material model or population changes, while exception records do not create timely review.
- Add event-based review triggers alongside annual review. ✓Combining scheduled review with material supplier and population-change triggers addresses both continuity and timely reassessment.
The trap
Look for both a baseline cadence and triggers tied to changed models, populations, data, or risk conditions. How to remember it
Annual review should be supplemented by triggers for material supplier and population changes affecting validation assumptions.
How many of these would you get right?
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