Constraints vs Performance

Visualizations exploring the use of constraints vs performance improvements in risk management.

library(ggplot2)
library(jbplot)
library(fs)
library(tibble)
library(dplyr)

Normal Performance

Replicate a version of Figure 9 from the Safety-II White Paper, with help from https://ggplot2tutor.com/tutorials/sampling_distributions:

xmin <- -5
xmax <- 5

save_png <- function(filename) {
  ggsave(filename = path("rendered", filename), width = 16 * 0.6, height = 9 * 0.6, bg = "white")
}

background <- ggplot(data.frame(x = c(xmin, xmax)), aes(x)) +
  scale_x_continuous(breaks = -3:3, minor_breaks = NULL) +
  labs(x = NULL, y = NULL) +
  theme_quo(minor.y = FALSE)

baseline <- stat_function(fun = dnorm, geom = "line")
bad <- stat_function(fun = dnorm, geom = "area", fill = "red", xlim = c(xmin, -2))

background + bad + baseline

save_png("01-baseline-bad.png")

The plot above shows “bad” outcomes in red. Let’s add in “good” outcomes (>1) in green:

good <- stat_function(fun = dnorm, geom = "area", fill = "green", xlim = c(1, xmax))

background + bad + good + baseline

save_png("02-baseline-bad-good.png")

Constrained Performance

One way of reducing “bad” outcomes is by constraining performance - reducing the standard deviation.

constrained <- stat_function(fun = dnorm, args = list(sd = 0.7), geom = "line", color = "blue")
taller <- scale_y_continuous(limits = c(0, 0.6))

background +
  stat_function(
    fun = dnorm, args = list(sd = 0.7), geom = "area", fill = "red", xlim = c(xmin, -2)
  ) +
  stat_function(
    fun = dnorm, args = list(sd = 0.7), geom = "area", fill = "green", xlim = c(1, xmax)
  ) +
  constrained +
  taller

save_png("03-constrained.png")

Plotting both on the same grid shows the reduction in both “bad” and “good” outcomes:

background +
  bad +
  good +
  baseline +
  constrained +
  taller

save_png("04-baseline-constrained.png")

Improved Performance

Another way of reducing bad outcomes is by improving performance - shifting the mean.

performance <- stat_function(fun = dnorm, args = list(mean = 1), geom = "line", color = "blue")
improved <- stat_function(
  fun = dnorm, args = list(mean = 1), geom = "area", fill = "green", xlim = c(1, xmax)
)

background +
  stat_function(
    fun = dnorm, args = list(mean = 1), geom = "area", fill = "red", xlim = c(xmin, -2)
  ) +
  improved +
  performance

save_png("05-improved.png")

Plotting both together shows a reduction in “bad” and an increase in “good” outcomes:

background +
  bad +
  improved +
  baseline +
  performance

save_png("06-baseline-improved.png")

Comparing all three:

background +
  bad +
  improved +
  baseline +
  constrained +
  performance +
  taller

save_png("07-baseline-constrained-improved.png")

Growth of Controls

Visualize an example of the growth of controls using the Cyentia/RiskRecon State of Third-Party Risk Management 2020 and 2024 reports (data from 2023).

Source:

• 2020 data: https://www.riskrecon.com/state-of-third-party-risk-management-report
• 2023 data: https://www.riskrecon.com/state-of-third-party-risk-management-2024

questionnaire <- tribble(
  ~year, ~questions, ~percent,
  2020,  ">400",     0.041,
  2020,  "101-400",  0.148,
  2020,  "11-100",   0.705,
  2020,  "1-10",     0.107,
  2023,  ">400",     0.02,
  2023,  "101-400",  0.333,
  2023,  "11-100",   0.616,
  2023,  "1-10",     0.030
) |>
  mutate(year = as.factor(year)) |>
  mutate(questions = factor(questions, levels = c("1-10", "11-100", "101-400", ">400")))

ggplot(questionnaire, aes(questions, percent, fill = year)) +
  geom_col(position = "dodge") +
  scale_y_continuous(labels = scales::label_percent()) +
  scale_fill_manual(values = c("steelblue2", "steelblue4")) +
  labs(x = NULL, y = NULL, fill = "Year", title = "Third-Party Questionnaire Length by Year") +
  labs(caption = "Source: Cyentia/RiskRecon State of Third-Party Risk Management, 2020 and 2024") +
  theme_quo()

save_png("08-questionnaire-length.png")

Transparent Donut

Create a transparent donut plot showing an 80% reduction.

# custom function based on ggplot_donut_percent()
custom_donut <- function(p, text = "", accuracy = NULL, hsize = 4, size = 12, family = "Lato") {
  data <- data.frame(group = c(TRUE, FALSE), n = c(p, 1 - p))
  label <- paste0(scales::label_percent(accuracy = accuracy)(p), "\n", text)

  ggplot_donut(data, hsize = hsize) +
    guides(fill = "none") +
    geom_text(x = 0, label = label, size = size, family = family) +
    scale_fill_grey() +
    theme(plot.background = element_rect(fill = "transparent", color = NA))
}

custom_donut(0.8, "reduction")

ggsave("rendered/80-percent-safety.png")

Saving 8.5 x 5 in image

custom_donut(0.8, "reduction?")

ggsave("rendered/80-percent-security.png")

Saving 8.5 x 5 in image